Question

Use the following financial statements for Lake of Egypt Marina, Inc. LAKE OF EGYPT MARINA, INC Balance Sheet as of December 31, 2015 and 2014 (in millions of dollars) 2015 2014 2015 2014   Assets   Liabilities and Equity   Current assets:   Current liabilities:      Cash and marketable securities $ 100 $ 48      Accrued wages and taxes $ 60 $ 48      Accounts receivable 110 72      Accounts payable 110 72      Inventory 301 174      Notes payable 70 60         Total $ 511 $ 294         Total $ 240 $ 180   Fixed assets:   Long term debt: 429 237      Gross plant and equipment $ 520 $ 330   Stockholders’ equity:      Less: Depreciation 81 60      Preferred stock (3 million shares) $ 3 $ 3      Common stock and paid-in      surplus (24 million shares) 24 24      Net plant and equipment $ 439 $ 270      Retained earnings 304 156      Other long-term assets 50 36         Total $ 489 $ 306         Total $ 331 $ 183      Total assets $ 1,000 $ 600   Total liabilities and equity $ 1,000 $ 600 LAKE OF EGYPT MARINA, INC. Income Statement for Years Ending December 31, 2015 and 2014 (in millions of dollars) 2015 2014   Net sales (all credit) $ 500 $ 400   Less: Cost of goods sold 180 136   Gross profits $ 320 $ 264   Less: Other operating expenses 26 24   Earnings before interest, taxes, depreciation, and amortization (EBITDA) 294 240   Less: Depreciation 21 16   Earnings before interest and taxes (EBIT) $ 273 $ 224   Less: Interest 23 24   Earnings before taxes (EBT) $ 250 $ 200   Less: Taxes 75 60   Net income $ 175 $ 140   Less: Preferred stock dividends $ 3 $ 3   Net income available to common stockholders $ 172 $ 137   Less: Common stock dividends 24 24   Addition to retained earnings $ 148 $ 113   Per (common) share data:      Earnings per share (EPS) $ 7.167 $ 5.708      Dividends per share (DPS) $ 1.000 $ 1.000      Book value per share (BVPS) $ 13.667 $ 7.500      Market value (price) per share (MVPS) $ 14.950 $ 12.750 Calculate the following ratios for Lake of Egypt Marina, Inc. as of year-end 2015. (Use sales when computing the inventory turnover and use total equity when computing the equity multiplier. Round your answers to 2 decimal places. Use 365 days a year.) LAKE OF EGYPT MARINA, INC. a. Current ratio times b. Quick ratio times c. Cash ratio times d. Inventory turnover times e. Days’ sales in inventory days f. Average collection period days g. Average payment period days h. Fixed asset turnover times i. Sales to working capital times j. Total asset turnover times k. Capital intensity times l. Debt ratio % m. Debt-to-equity times n. Equity multiplier times o. Times interest earned times p. Cash coverage times q. Profit margin % r. Gross profit margin % s. Operating profit margin % t. Basic earnings power % u. ROA % v. ROE % w. Dividend payout % x. Market-to-book ratio times y. PE ratio times

Answer 1