The balance sheet and income statement shown below are for Koski Inc. Note that the firm has no amortization charges, it does not lease any assets, none of its debt must be retired during the next 5 years, and the notes payable will be rolled over. Balance Sheet (Millions of $) Assets 2018 Cash and securities $3,000 Accounts receivable 15,000 Inventories 18,000 Total current assets $36,000 Net plant and equipment $24,000 Total assets $60,000 Liabilities and Equity Accounts payable $18,630 Accruals 8,370 Notes payable 6,000 Total current liabilities $33,000 Long-term bonds $9,000 Total liabilities $42,000 Common stock $5,040 Retained earnings 12,960 Total common equity $18,000 Total liabilities and equity $60,000 Income Statement (Millions of $) 2018 Net sales $84,000 Operating costs except depreciation 78,120 Depreciation 1,680 Earnings before interest and taxes (EBIT) $4,200 Less interest 900 Earnings before taxes (EBT) $3,300 Taxes 1,320 Net income $1,980 Other data: Shares outstanding (millions) 500.00 Common dividends (millions of $) $693.00 Int rate on notes payable & L-T bonds 6% Federal plus state income tax rate 40% Year-end stock price $47.52 Refer to Exhibit 4.1. What is the firm's current ratio? Do not round your intermediate calculations. a. 1.23 b. 0.87 c. 1.09 d. 0.85 e. 1.17

Name: The balance sheet and income statement shown below are for Koski Inc.
Uploaded: 2022-11-18T00:26:54.000Z
Channel: Bartleby
Description: The balance sheet and income statement shown below are for Koski Inc. Note that the firm has no amortization charges, it does not lease any assets, none of its debt must be retired during the next 5 years, and the notes payable will be rolled over. B

Intermediate Financial Management (MindTap Course List)

13th Edition

ISBN:9781337395083

Author:Eugene F. Brigham, Phillip R. Daves

Publisher:Eugene F. Brigham, Phillip R. Daves

Chapter9: Corporate Valuation And Financial Planning

Section: Chapter Questions

Problem 5P: Long-Term Financing Needed At year-end 2018, Wallace Landscapings total assets were 2.17 million,...

See similar textbooks

Related questions

Question

Practice Pack

The balance sheet and income statement shown below are for Koski Inc. Note that the firm has no amortization charges, it does not lease any assets, none of its debt must be retired during the next 5 years, and the notes payable will be rolled over.

Balance Sheet (Millions of $)
Assets		2018
Cash and securities		$3,000
Accounts receivable		15,000
Inventories		18,000
Total current assets		$36,000
Net plant and equipment		$24,000
Total assets		$60,000
Liabilities and Equity
Accounts payable		$18,630
Accruals		8,370
Notes payable		6,000
Total current liabilities		$33,000

Long-term bonds		$9,000
Total liabilities		$42,000
Common stock		$5,040
Retained earnings		12,960
Total common equity		$18,000
Total liabilities and equity		$60,000

Income Statement (Millions of $)		2018
Net sales		$84,000
Operating costs except depreciation	78,120
Depreciation		1,680
Earnings before interest and taxes (EBIT)	$4,200
Less interest		900
Earnings before taxes (EBT)		$3,300
Taxes		1,320
Net income		$1,980

Other data:
Shares outstanding (millions)		500.00
Common dividends (millions of $)		$693.00
Int rate on notes payable & L-T bonds	6%
Federal plus state income tax rate	40%
Year-end stock price		$47.52