Southeast Systems has the following balance sheet and the income statement. The company had 10 million shares of common stock outstanding and its market price of the common stock was $78 at the end of 2014. Make sure the unit is in million dollars. (unit: $ in millions) Southeast Systems Balance Sheets 2013 2014 2013 2014 Cash $50 $100 Accounts payable $450 $500 Accounts receivable 600 700 Notes payable 300 400 Inventory 500 550 Long-term debt 650 650 Net fixed assets 1,000 1,000 Common equity 300 300 Retained earnings 450 500 Total Assets $2,150 $2,350 Total Liabilities & Owner’s Equity $2,150 $2,350 Income Statement 2014 Sales $2,370 Cost of goods sold 2,070 Depreciation 200 EBIT 100 Interest expenses 20 Taxable income 80 Taxes 28 Net income $52 Dividends $2 (1) What is the value of the interest coverage ratio for 2014? (2) What is the value of the days in inventory for 2014?
QUESTION 6
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Southeast Systems has the following balance sheet and the income statement. The company had 10 million shares of common stock outstanding and its market price of the common stock was $78 at the end of 2014. Make sure the unit is in million dollars.
(unit: $ in millions)
Southeast Systems
Balance Sheets
2013
2014
2013
2014
Cash
$50
$100
Accounts payable
$450
$500
Accounts receivable
600
700
Notes payable
300
400
Inventory
500
550
Long-term debt
650
650
Net fixed assets
1,000
1,000
Common equity
300
300
Retained earnings 450
500
Total Assets
$2,150
$2,350
Total Liabilities & Owner’s Equity
$2,150
$2,350
Income Statement
2014
Sales
$2,370
Cost of goods sold
2,070
Depreciation 200
EBIT
100
Interest expenses
20
Taxable income
80
Taxes
28
Net income
$52
Dividends
$2
(1) What is the value of the interest coverage ratio for 2014?
(2) What is the value of the days in inventory for 2014?
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