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 $ 40 $ 30 Accrued wages and taxes $ 32 $ 24 Accounts receivable 32 39 Accounts payable 40 27 Inventory 175 60 Notes payable 32 30 Total $ 247 $ 129 Total $ 104 $ 81 Fixed assets: Long term debt: 36 114 Gross plant and equipment $ 208 $ 189 Stockholders’ equity: Less: Depreciation 75 36 Preferred stock (3 million shares) $ 3 $ 3 Common stock and paid-in surplus (24 million shares) 24 24 Net plant and equipment $ 133 $ 153 Retained earnings 233 78 Other long-term assets 20 18 Total $ 153 $ 171 Total $ 260 $ 105 Total assets $ 400 $ 300 Total liabilities and equity $ 400 $ 300 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) $ 650 $ 500 Less: Cost of goods sold 260 190 Gross profits $ 390 $ 310 Less: Other operating expenses 52 35 Earnings before interest, taxes, depreciation, and amortization (EBITDA) 338 275 Less: Depreciation 39 30 Earnings before interest and taxes (EBIT) $ 299 $ 245 Less: Interest 39 35 Earnings before taxes (EBT) $ 260 $ 210 Less: Taxes 78 63 Net income $ 182 $ 147 Less: Preferred stock dividends $ 3 $ 3 Net income available to common stockholders $ 179 $ 144 Less: Common stock dividends 24 24 Addition to retained earnings $ 155 $ 120 Per (common) share data: Earnings per share (EPS) $ 7.458 $ 6.000 Dividends per share (DPS) $ 1.000 $ 1.000 Book value per share (BVPS) $ 10.708 $ 4.250 Market value (price) per share (MVPS) $ 15.200 $ 13.000 Calculate the following ratios for Lake of Egypt Marina, Inc. as of year-end 2015. (Use sales when computing the inventory turnover and use common stockholders' 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