Chapter 15, Problem 15P

To determine

Concept Introduction:

Ratios:

A ratio can be defined as a measure calculated to know the relation of two variable, that how they depend on each other. An increase in numerator and decrease in denominator will increase the ratio, on the other hand, a decrease in numerator and increase in denominator will decrease the ratio.

Times interest earned ratio:

It is the measure of a company’s ability to pay its debts obligations or interest obligations.

The formula of times interest earned ratio is −

$Times-interest-earned-ratio=\frac{Incomebeforeinterestandtaxes}{Interestexpense}$

Debt to equity:

Debt to equity can be defined as a ratio that measures a company’s financial leverage. It is calculated by dividing total liabilities to total shareholder’s equity.

Debt to equity is calculated as under −

$Debttoequity=\frac{Totalliabilities}{Totalshareholder’sequity}$

Rate of Return on total assets:

Rate of Return on total assets can be defined as the ratio that measures a company’s earnings before interest and taxes (EBIT) against its total net assets or average total assets.

Rate of Return on total assets can be calculated as −

$\text{Rate of Return on Total Assets}=\frac{\text{Net Income}}{\text{Average Total assets}}$

Now, the average total assets are calculated as −

$\text{Average total assets}=\frac{\text{Beginning Total assets}+\text{Ending total assets}}{2}$

Return on Common Stockholder’s Equity:

Return on Common Stockholder’s Equity is the rate of return earned by the Common Stockholders on their investment in the company. It is calculated with the help of following formula:

$\text{Return on Common Stockholder’s Equity = }\frac{\text{Net Income }}{\text{Average Common Stockholder’s Equity}}$

Dividend yield:

Dividend yield can be defined as the measure in which the cash dividend is expressed as a percentage of the current market price. This is calculated in order to know the return earned or the yield generated by the share depending on their current market price.

Dividend yield is calculated as under −

$DividendYield=\frac{Annualcashdividendpershare}{Marketvaluepershare}$

Requirement 1:

To compute:

1. Times interest earned ratio
2. Debt-to-equity ratio
3. Gross margin percentage
4. Return on total assets
5. Return on equity
6. Company’s financial leverage positive or negative

Answer to Problem 15P

Solution:

The answers are −

	Ratios	This year	Last year
a	Times interest earned ratio	4.33	3.4
b	Debt-to-equity ratio	0.78	0.63
c	Gross margin percentage	20%	20.70%
d	Return on total assets	5.25%	3.62%
e	Return on equity	8.97%	5.57%
f	Company's financial leverage	1.3	1.42

Explanation of Solution

The above answers can be explained as under −

a. Times interest earned ratio −

For this year −

Given:

• Net Income income before interest and tax = $ 1,560,000
• Interest Expense = $ 360,000

The times-interest-earned-ratio will be calculated as −

$\begin{array}{l}\\ Times-interest-earned-ratio=\frac{Incomebeforeinterestandtaxes}{Interestexpense}\\ Times-interest-earned-ratio=\frac{\$\text{ 1,560,000}}{\$360,000}\\ Times-interest-earned-ratio=\text{ 4}\text{.33}\end{array}$

The times-interest-earned-ratio = 4.33

For last year −

Given:

• Net Income income before interest and tax = $ 1,020,000
• Interest Expense = $ 300,000

The times-interest-earned-ratio will be calculated as −

$\begin{array}{l}\\ Times-interest-earned-ratio=\frac{Incomebeforeinterestandtaxes}{Interestexpense}\\ Times-interest-earned-ratio=\frac{\$\text{ 1,020,000}}{\$\text{ 300},000}\\ Times-interest-earned-ratio=\text{ 3}\text{.4}\end{array}$

The times-interest-earned-ratio = 4.72

b. Debt-to-equity ratio −

For this year − Given,

Total liabilities = $ 7,500,000

Total equity = $ 9,600,000

$\begin{array}{l}Debttoequity=\frac{Totalliabilities}{Totalshareholder’sequity}\\ Debttoequity=\frac{\$7,500,000}{\$\text{ 9,600},000}\\ Debttoequity=\text{ 0}.78125\end{array}$

Debt-to-equity ratio = 0.78

For last year − Given,

• Total liabilities = $ 5,760,000
• Total equity = $ 9,120,000

$\begin{array}{l}Debttoequity=\frac{Totalliabilities}{Totalshareholder’sequity}\\ Debttoequity=\frac{\$\text{ 5},760,000}{\$\text{ 9,120},000}\\ Debttoequity=0.6316\end{array}$

Debt-to-equity ratio = 0.63

Gross margin percentage −

For this year − Given

Sales = $ 15,750,000

Gross margin = $ 3,150,000

$\begin{array}{l}Grossmarginpercentage=\frac{GrossMargin}{Sales}X100\hfill \\ Grossmarginpercentage=\frac{\$3,150,000}{\$15,750,000}X100\hfill \\ Grossmarginpercentage=20\%\hfill \end{array}$

Gross margin percentage = 20 %

For last year − Given

• Sales = $ 12,480,000
• Gross margin = $ 2,580,000

$\begin{array}{l}Grossmarginpercentage=\frac{GrossMargin}{Sales}X100\hfill \\ Grossmarginpercentage=\frac{\$\text{ 2},580,000}{\$12,480,000}X100\hfill \\ Grossmarginpercentage=20.67\%\hfill \end{array}$

Gross margin percentage = 20.67 %

Return on total assets −

For this year − Given,

• Net Income = $ 840,000
• Beginning total assets = $ 14,880,000
• Ending total assets = $ 17,100,000

$\text{Average total assets}=\frac{\text{Beginning Total assets}+\text{Ending total assets}}{2}$

$\begin{array}{l}\text{Average total assets}=\frac{\$14,880,000+\$17,100,000}{2}\\ \text{Average total assets}=\$15,990,000\end{array}$

$\text{Rate of Return on Total Assets}=\frac{\text{Net Income}}{\text{Average Total assets}}$

$\begin{array}{l}=\frac{\$840,000}{\$15,990,000}\\ =\text{ 5}\text{.25\%}\end{array}$

For last year − Given,

• Net Income = $ 504,000
• Beginning total assets = $ 12,960,000
• Ending total assets = $ 14,880,000

$\text{Average total assets}=\frac{\text{Beginning Total assets}+\text{Ending total assets}}{2}$

$\begin{array}{l}\text{Average total assets}=\frac{\$12,960,000+\$14,880,000}{2}\\ \text{Average total assets}=\$13,920,000\end{array}$

$\text{Rate of Return on Total Assets}=\frac{\text{Net Income}}{\text{Average Total assets}}$

$\begin{array}{l}=\frac{\$504,000}{\$13,920,000}\\ =\text{ 3}\text{.62\%}\end{array}$

Return on equity −

For this year − Given,

• Net Income = $ 840,000
• Beginning Stockholder’s equity = $ 9,120,000
• Ending stockholder’s equity = $ 9,600,000

Now, average stockholder’s equity −

$\text{Average }stockholder’sequity=\frac{\text{Beginning }stockholder’sequity+\text{Ending }stockholder’sequity}{2}$

$\begin{array}{l}\text{Average }Stockholder’sequity=\frac{\$9,600,000+\$9,120,000}{2}\\ \text{Average }Stockholder’sequity=\$9,360,000\end{array}$

$\begin{array}{l}\text{Return on Common Stockholder’s Equity = }\frac{\text{Net Income }}{\text{Average Common Stockholder’s Equity}}\\ \text{Return on Common Stockholder’s Equity = }\frac{\text{\$ 840,000}}{\$9,360,000}\\ \text{Return on Common Stockholder’s Equity = 8}\text{.97\%}\end{array}$

For last year − Given,

• Net Income = $ 504,000
• Beginning Stockholder’s equity = $ 9,048,000
• Ending stockholder’s equity $ 9,120,000

Now, average stockholder’s equity −

$\text{Average }stockholder’sequity=\frac{\text{Beginning }stockholder’sequity+\text{Ending }stockholder’sequity}{2}$

$\begin{array}{l}\text{Average }Stockholder’sequity=\frac{\$9,048,000+\$9,120,000}{2}\\ \text{Average }Stockholder’sequity=\$9,084,000\end{array}$

$\begin{array}{l}\text{Return on Common Stockholder’s Equity = }\frac{\text{Net Income }}{\text{Average Common Stockholder’s Equity}}\\ \text{Return on Common Stockholder’s Equity = }\frac{\text{\$ 504,000}}{\$9,048,000}\\ \text{Return on Common Stockholder’s Equity = 5}\text{.57\%}\end{array}$

Financial leverage of the company −

For this year − Given,

• Earnings before interest and taxes = $ 1,560,000
• Earnings after interest before tax = $ 1,200,000

$\begin{array}{l}Financialleverage=\frac{Earningsbeforeinterestandtaxes}{Earningsafterinterestbeforetaxes}\hfill \\ Financialleverage=\frac{\$1,560,000}{\$1,200,000}\hfill \\ Financialleverage=1.3\hfill \end{array}$

The financial leverage is positive here.

For last years − Given,

• Earnings before interest and taxes = $ 1,020,000
• Earnings after interest before tax = $ 720,000

$\begin{array}{l}Financialleverage=\frac{Earningsbeforeinterestandtaxes}{Earningsafterinterestbeforetaxes}\hfill \\ Financialleverage=\frac{\$1,020,000}{\$\text{ 72}0,000}\hfill \\ Financialleverage=1.42\hfill \end{array}$

The financial leverage is positive here.

Conclusion

Thus, all the required ratios have been calculated.

To determine

Requirement 2

To compute the following ratios for this year and the last year −

1. Earnings per share
2. Dividend yield ratio
3. Dividend pay-out ratio
4. Price-earnings ratio
5. Book value per share

Answer to Problem 15P

Solution:

	Ratios	This year	Last year
a	Earnings per share	8.4	5.04
b	Dividend yield ratio	5%	6.30%
c	Dividend pay-out ratio	42.86%	50%
d	Price-earnings ratio	8.57	7.94
e	Book value per share	$96	$91.2

Explanation of Solution

Earnings per share −

For this year − Given,

• Net income available for common stock = $ 840,000
• Weighted average number of common stock = 100,000 shares (i.e. $\frac{\$7,800,000}{\$78parvalue}$)

$\begin{array}{l}EPS=\frac{NetIncome}{WeightedAverageCommonStock}\\ EPS=\frac{\$840,000}{100,000shares}\\ EPS=\$8.40\end{array}$

For last year − Given,

• Net income available for common stock = $ 504,000
• Weighted average number of common stock = 100,000 shares (i.e. $\frac{\$7,800,000}{\$78parvalue}$)

$\begin{array}{l}EPS=\frac{NetIncome}{WeightedAverageCommonStock}\\ EPS=\frac{\$504,000}{100,000shares}\\ EPS=\$5.04\end{array}$

Dividend yield ratio −

For this year − Given,

Annual cash dividend per share = $ 3.60 (i.e. $\frac{\$360,000}{\text{100,000 shares}}$)

• Market price per share = $ 72 per share

$\begin{array}{l}DividendYield=\frac{Annualcashdividendpershare}{Marketvaluepershare}\\ DividendYield=\frac{\text{ \$ 3}\text{.60 per share}}{\text{\$ 72 }pershare}\\ DividendYield=5\%\\ \end{array}$

For last year − Given,

Annual cash dividend per share = $ 2.52 (i.e. $\frac{\$252,000}{\text{100,000 shares}}$)

• Market price per share = $ 40 per share

$\begin{array}{l}DividendYield=\frac{Annualcashdividendpershare}{Marketvaluepershare}\\ DividendYield=\frac{\text{ \$ 2}\text{.52 per share}}{\text{\$ 40 }pershare}\\ DividendYield=6.30\%\\ \end{array}$

Dividend pay-out ratio −

For this year − Given,

Earnings per share = $ 8.40

Dividends paid per share = $ 3.60 (i.e. $\frac{\$360,000}{\text{100,000 shares}}$ ) $\begin{array}{l}Dividendpay-outratio=\frac{Dividendspershare}{Earningspershare}X100\hfill \\ Dividendpay-outratio=\frac{\$3.60}{\$8.40}X100\hfill \\ Dividendpay-outratio=42.86\%\hfill \end{array}$

For last year − Given,

• Earnings per share = $ 5.04

Dividends paid per share = $ 2.52 (i.e. $\frac{\$252,000}{\text{100,000 shares}}$)

$\begin{array}{l}Dividendpay-outratio=\frac{Dividendspershare}{Earningspershare}X100\hfill \\ Dividendpay-outratio=\frac{\$\text{ 2}.52}{\$\text{ 5}.04}X100\hfill \\ Dividendpay-outratio=\text{ 50}\%\hfill \end{array}$

Price-earnings ratio −

For this year −

Given,

• Market price per share = $ 72
• Earnings per share = $ 8.4

$\begin{array}{l}Price-earningsratio=\frac{Marketpricepershare}{Earningspershare}\hfill \\ Price-earningsratio=\frac{\$72}{\$8.40}\hfill \\ Price-earningsratio=8.57\hfill \end{array}$

For last year −

Given,

• Market price per share = $ 40
• Earnings per share = $ 5.04

$\begin{array}{l}Price-earningsratio=\frac{Marketpricepershare}{Earningspershare}\hfill \\ Price-earningsratio=\frac{\$\text{ 40}}{\$\text{ 5}.04}\hfill \\ Price-earningsratio=\text{ 7}.94\hfill \end{array}$

Book value per share −

For this year − Given

• Total Shareholder’s Equity = $ 9,600,000
• Common stock outstanding = 100,000

$BookValuepershare=\frac{Totalshareholder\text{'}sequity}{CommonStockOutsts\tan ding}$

$\begin{array}{l}BookValuepershare=\frac{9,600,000}{ 100,000}\\ BookValuepershare=\$96\end{array}$

Yes, it can be said that the stock is at bargain price, as the market price is less than its book value per share.

For last year − Given

• Total Shareholder’s Equity = $ 9,120,000
• Common stock outstanding = 100,000

$BookValuepershare=\frac{Totalshareholder\text{'}sequity}{CommonStockOutsts\tan ding}$

$\begin{array}{l}BookValuepershare=\frac{9,120,000}{ 100,000}\\ BookValuepershare=\$91.2\end{array}$

Yes, it can be said that the stock is at bargain price, as the market price is less than its book value per share.

Conclusion

Thus, all the ratios have been calculated.

To determine

Requirement 3

To compute:

The following ratios for last year and this year −

1. Working capital
2. Current ratio
3. Acid-test ratio
4. Average collection period
5. Average sale period
6. Operating cycle
7. Total asset turnover

Answer to Problem 15P

Solution:

	Ratios	This year	Last year
a	Working capital	39,00,000	31,80,000
b	Current Ratio	2	2.15
c	Acid-test ratio	0.94	1.22
d	Average collection period	52.14	49.13
e	Average sale period	91.25	79.69
f	Operating cycle	143.39	128.82
g	Total asset turnover	0.99	0.9

Explanation of Solution

The ratios are calculated as under −

Working Capital −

For this year −

• Current assets = $ 7,800,000
• Current Liabilities = $ 3,900,000

$\begin{array}{l}WorkingCapital=Currentassets–Currentliabilities\hfill \\ WorkingCapital=\$7,800,000–\$3,900,000\hfill \\ WorkingCapital=\$3,900,000\hfill \end{array}$

For last year −

• Current assets = $ 5,940,000
• Current Liabilities = $ 2,760,000

$\begin{array}{l}WorkingCapital=Currentassets–Currentliabilities\hfill \\ WorkingCapital=\$5,940,000–\$2,760,000\hfill \\ WorkingCapital=\$3,180,000\hfill \end{array}$

Current Ratio −

For this year −

• Current assets = $ 7,800,000
• Current Liabilities = $ 3,900,000

$\begin{array}{l}Current\text{ Ratio }=\frac{Currentassets}{Currentliabilities}\hfill \\ Current\text{ Ratio }=\frac{\$7,800,000}{\$3,900,000}\hfill \\ Current\text{ Ratio }=\text{ 2 }\hfill \end{array}$

For last year −

• Current assets = $ 5,940,000
• Current Liabilities = $ 2,760,000

$\begin{array}{l}Current\text{ Ratio }=\frac{Currentassets}{Currentliabilities}\hfill \\ Current\text{ Ratio }=\frac{\$\text{ 5},940,000}{\$\text{ 2},760,000}\hfill \\ Current\text{ Ratio }=\text{ 2}\text{.15 }\hfill \end{array}$

Acid test ratio −

For this year − Given,

• Cash = $ 960,000
• Marketable securities = $ 0
• Accounts receivables, net = $ 2,700,000
• Current liabilities = 3,900,000

$\begin{array}{l}Acid–testratio=\frac{Quickassets}{Currentliabilities}\hfill \\ Acid–testratio=\frac{Cash+Marketablesecurities+Accountsreceivables,net}{Currentliabilities}\hfill \\ Acid–testratio=\frac{\$960,000+0+\$2,700,000}{\$3,900,000}\hfill \\ Acid–testratio=0.94\hfill \end{array}$

For last year − Given,

• Cash = $ 1,260,000
• Marketable securities = $ 300,000
• Accounts receivables, net = $ 1,800,000
• Current liabilities = 2,760,000

$\begin{array}{l}Acid–testratio=\frac{Quickassets}{Currentliabilities}\hfill \\ Acid–testratio=\frac{Cash+Marketablesecurities+Accountsreceivables,net}{Currentliabilities}\hfill \\ Acid–testratio=\frac{\$1,260,000+\text{ \$ 30}0,000+\$\text{ 1},800,000}{\$\text{ 2},760,000}\hfill \\ Acid–testratio=\text{ 1}.22\hfill \end{array}$

Average collection period −

For this year − Given,

Sales on account = $ 15,750,000

Accounts receivables, beginning = $ 1,800,000

Accounts receivables, ending = $ 2,700,000

$\begin{array}{l}Averageaccountsreceivables=\frac{Accountsreceivables,beginning+Accountsreceivables,ending}{2}\hfill \\ Averageaccountsreceivables=\frac{\$1,800,000+\$2,700,000}{2}\hfill \\ Averageaccountsreceivables=\$2,250,000\hfill \\ Accountsreceivablesturnover=\frac{Sales}{Averageaccountsreceivables}\hfill \\ Accountsreceivablesturnover=\frac{\$15,750,000}{\$2,250,000}\hfill \\ Accountsreceivablesturnover=7\hfill \\ Averagecollectionperiod=\frac{365days}{Accountsreceivablesturnover}=\frac{365days}{7}\hfill \\ Averagecollectionperiod=52.14or53days\hfill \end{array}$

For last year − Given,

• Sales on account = $ 12,480,000
• Accounts receivables, beginning = $ 1,560,000
• Accounts receivables, ending = $ 1,800,000

$\begin{array}{l}Averageaccountsreceivables=\frac{Accountsreceivables,beginning+Accountsreceivables,ending}{2}\hfill \\ Averageaccountsreceivables=\frac{\$1,560,000+\$\text{ 1},800,000}{2}\hfill \\ Averageaccountsreceivables=\$\text{ 1},680,000\hfill \\ Accountsreceivablesturnover=\frac{Sales}{Averageaccountsreceivables}\hfill \\ Accountsreceivablesturnover=\frac{\$12,480,000}{\$\text{ 1},680,000}\hfill \\ Accountsreceivablesturnover=7.43\hfill \\ Averagecollectionperiod=\frac{365days}{Accountsreceivablesturnover}=\frac{365days}{7.43}\hfill \\ Averagecollectionperiod=\text{ 49}.13or50days\hfill \end{array}$

Average sale period −

For this period − Given,

• Cost of goods sold = $ 12,600,000
• Inventory, Beginning = $ 2,400,000
• Inventory, Ending = $ 3,900,000

$\begin{array}{l}Averageinventory=\frac{Inventory,Beginning+Inventory,Ending}{2}\hfill \\ Averageinventory=\frac{\$2,400,000+\$3,900,000}{2}\hfill \\ Averageinventory=\$3,150,000\hfill \\ Inventoryturnover=\frac{Costofgoodssold}{Averageinventory}\hfill \\ Inventoryturnover=\frac{\$12,600,000}{\$3,150,000}\hfill \\ Inventoryturnover=4\hfill \\ Averagesaleperiod=\frac{365days}{Inventoryturnover}=\frac{365days}{4}\hfill \\ Averagesaleperiod=91.25daysor93days\hfill \end{array}$

For last period − Given,

• Cost of goods sold = $ 9,900,000
• Inventory, Beginning = $ 1,920,000
• Inventory, Ending = $ 2,400,000

$\begin{array}{l}Averageinventory=\frac{Inventory,Beginning+Inventory,Ending}{2}\hfill \\ Averageinventory=\frac{\$\text{ 1,920,000 + }\$2,400,000}{2}\hfill \\ Averageinventory=\$\text{ 2},160,000\hfill \\ Inventoryturnover=\frac{Costofgoodssold}{Averageinventory}\hfill \\ Inventoryturnover=\frac{\$\text{ 9},900,000}{\$\text{ 2},160,000}\hfill \\ Inventoryturnover=4.58\hfill \\ Averagesaleperiod=\frac{365days}{Inventoryturnover}=\frac{365days}{4.58}\hfill \\ Averagesaleperiod=\text{ 79}.69daysor\text{ 80 }days\hfill \end{array}$

Operating cycle −

For this year − Given,

• Average sale period = 52.14 days
• Average collection period = 91.25 days

$\begin{array}{l}Operatingcycle=Averagesaleperiod+Averagecollectionperiod\hfill \\ Operatingcycle=52.14days+91.25days\hfill \\ Operatingcycle=143.39days\hfill \end{array}$

For last year − Given,

• Average sale period = 49.13 days
• Average collection period = 79.64 days

$\begin{array}{l}Operatingcycle=Averagesaleperiod+Averagecollectionperiod\hfill \\ Operatingcycle=49.13days+\text{ 79}.64days\hfill \\ Operatingcycle=128.77days\hfill \end{array}$

Total assets turnover −

For this year − Given,

• Sales = $ 15,750,000
• Average total assets = $ 15,990,000

$\begin{array}{l}Totalassetsturnover=\frac{Sales}{Averagetotalasset}\hfill \\ Totalassetsturnover=\frac{\$15,750,000}{\$15,990,000}\hfill \\ Totalassetsturnover=0.99\hfill \end{array}$

For last year − Given,

• Sales = $ 12,480,000
• Average total assets = $ 13,920,000

$\begin{array}{l}Totalassetsturnover=\frac{Sales}{Averagetotalasset}\hfill \\ Totalassetsturnover=\frac{\$12,480,000}{\$13,920,000}\hfill \\ Totalassetsturnover=0.90\hfill \end{array}$

Conclusion

Thus, all the ratios have been calculated.

To determine

Requirement 4

To prepare:

A brief memo that summarizes how Lydex is performing relative to its competitors.

Answer to Problem 15P

Solution:

The performance of Lydex can be explained as −

• The Lydex Company is doing fine in terms of current ratio and acid-test ratio but for sales period and collection period, it is far behind the industry averages.
• The return on total assets is also less when compared with the industry averages.
• Debt-to-equity ratio was appropriate till last year, but this year it deteriorated.
• The times-interest-earned ratio is also low as compared to industry averages.
• Similarly, the price-earnings ratio is low when compared with industry’s price earnings ratio.

Overall, the performance of the company is not up to to the mark as it should be as per the industry.

Explanation of Solution

The above answer can be explained as under −

The table is prepared to compare the ratios of the company for this year and last year −

Ratios	This year	Last year	Industry
Current Ratio	2	2.15	2.3
Acid-test ratio	0.94	1.22	1.2
Average collection period	52.14	49.13	30 days
Average sale period	91.25	79.69	60 days
Return on total assets	5.25%	3.62%	9.50%
Debt-to-equity ratio	0.78	0.63	0.65
Times interest earned ratio	4.33	3.4	5.7
Price-earnings ratio	8.57	7.94	10

Further it can be explained as −

1. The Lydex Company is doing fine in terms of current ratio as the current ratio of the industry is 2 and for both the years, it was near 2. The acid-test ratio was approprice foe the last year but it decreased this year.

• For the sales period, the average period is 30 days, while it is 52.14 days for this year and 49.13 days for last year. The collection period is very long for the company. The company should change its policies for the collections of accounts receivables.
• Similarly, for the sales period, it is far behind the industry averages.
• The return on total assets is also less when compared with the industry averages. The industry is earning more on total assets, while the company is again behind the industry averages. But from the last year to this year, it improved.
• Debt-to-equity ratio was appropriate till last year, but this year it deteriorated.
• The times-interest-earned ratio is also low as compared to industry averages. The industry is earning more to cover its interest obligations, when compared with the company.
• Similarly, the price-earnings ratio is low when compared with industry’s price-earnings ratio. The industry’s price-earnings ratio is 10, while for company it is low, but for this year it improved.

Conclusion

Thus, the brief memo for the performance of the company has been prepared.