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Assignment Unit 3 Challenge Problem The balance sheet

Resolved Question:


Unit 3 Challenge Problem:

The balance sheet and income statement shown below are for Kryloc Inc. You will find that the firm has no amortization charges. It also does not lease any assets and none of its debt must be retired during the next 5 years. The notes payable will be rolled over.
Balance Sheet (Millions of $)
Assets 2010
Cash and securities $ 2,500
Accounts receivable 11,500
Inventories 16,000
Total current assets $30,000
Net plant and equipment $20,000
Net plant and equipment $20,000 Total assets $50,000

Liabilities and Equity
Accounts payable $9,500
Notes payable 7,000
Accruals 5,500
Total current liabilities $22,000
Long-term bonds $15,000
Total debt $37,000
Common stock $2,000
Retained earnings 11,000
Total common equity $13,000
Total liabilities and equity $50,000

Income Statement (Millions of $) 2010
Net sales $87,500
Operating costs except depreciation 81,813
Depreciation 1,531
Earnings bef interest and taxes (EBIT) $4,156
Less interest 1,375
Earnings before taxes (EBT) $2,781
Taxes 973
Net income $1,808

Other data:
Shares outstanding (millions) 500.00
Common dividends $632.73
Int rate on notes payable & L-T bonds 6.25%
Federal plus state income tax rate 35%
Year-end stock price $43.39

Assignment Questions

What is the firm's current ratio?
What is the firm's quick ratio?
What is the firm's “days sales outstanding” (DSO)? Assume a 365-day year for this calculation.
What is the firm's total assets turnover?
What is the firm's inventory turnover ratio?
What is the firm's TIE?
What is the firm's debt/assets ratio?
What is the firm's ROA?
What is the firm's ROE?
What is the firm's dividends per share?
What is the firm's EPS?
What is the firm's P/E ratio?
What is the firm's book value per share?
Submitted: 5 years ago.
Category: Finance
Expert:  Manal Elkhoshkhany replied 5 years ago.



Please advise your deadline as well as the name of the book you are using: Title, author's name, and edition


Thank you

Customer: replied 5 years ago.
book- Title: Fundamentals of Financial Management, Concise 5th Edition

Author(s): Eugene F. Brigham and Joel F. Houston

ISBN: 0-324-31983-5

the deadline is Oct 3, 2011

Expert:  Manal Elkhoshkhany replied 5 years ago.
ok working on it
Customer: replied 5 years ago.
ok thanks
Expert:  Manal Elkhoshkhany replied 5 years ago.
you are welcome but please do not respond here so that I am not locked out from other questions. I will post the solutions as soon as I can
Customer: replied 5 years ago.
businesstutor i have not received the assignment yet are you still working on it i need it by in the morning
Expert:  Manal Elkhoshkhany replied 5 years ago.

I had opted out from answering the questionCustomeras I could not meet the deadline, but since you have extended it till today, I was able to complete it :)


Here you go:


Sorry about the delay

Manal Elkhoshkhany and other Finance Specialists are ready to help you
Expert:  Manal Elkhoshkhany replied 5 years ago.
I tried it now and it opened fineCustomer Do you have pop ups disabled?
Customer: replied 5 years ago.
Thank you I got it I have one more if you mine to do on starbucks if you will i have to go to starbucks corp website For this Distingiushed Scholar Project, your assignment is to research Starbucks. You'll search its corporate web site and find its financial statements. Once you have found the financial statements, you will calculate the past three year's worth of financial ratios. You will need to calculate all of the Liquidity and Asset Management ratios, Total debt to total assets ratio, all of the Profitability ratios, the P/E and M/B ratio. Thank you for your help.