What is the firms quick ratio

Assignment Help Finance Basics
Reference no: EM13294825

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 2007
Cash and securities $1,290
Accounts receivable 9,890
Inventories 13,760
Total current assets $24,940
Net plant and equipment $18,060
Total assets $43,000
Liabilities and Equity
Accounts payable $8,170
Notes payable 6,020
Accruals 4,730
Total current liabilities $18,920
Long-term bonds $8,815
Total debt $27,735
Common stock $5,805
Retained earnings 9,460
Total common equity $15,265
Total liabilities and equity $43,000

Income Statement (Millions of $) 2007
Net sales $51,600
Operating costs except depreciation 48,246
Depreciation 903
Earnings bef interest and taxes (EBIT) $2,451
Less interest 927
Earnings before taxes (EBT) $1,524
Taxes 533
Net income $990

Other data:
Shares outstanding (millions) 500.00
Common dividends (millions of $) $346.67
Int rate on notes payable & L-T bonds 6.25%
Federal plus state income tax rate 35%
Year-end stock price $23.77

What is the firm's quick ratio?
Answer 0.46


Reference no: EM13294825

Find the probability that at least three

If there are 30 people in a room, use simulation to find the probability that at least three of them will have the same birthday. (Assume that there are 365 days and all peo

What price change would lead to a margin call

What price change would lead to a margin call? Under what circumstances could $1,500 be with¬drawn from the margin account and what is the difference between the positions of

Highest rate you can afford on a 60-month apr loan

Assuming monthly compounding, what is the highest rate you can afford on a 60-month APR loan? (Round your answer as directed, but do not use rounded numbers in intermediate

Compare to the correct npv for project

Consider a project's incremental cash flows in order: -$700, $400, $300, $400. Assume a cost of capital of 7%. How does the NPV that you get by using Excel's NPV function

Describe the current deficiency

Identify the critical technical performance measures (TPMs), based on the defined operational requirements and maintenance concept. Describe the process leading from the ide

Execute the duration matching strategy

In order to execute the duration matching strategy, the above balance sheet needs to balance (market $ value), and the duration of the investments should equate to the durat

Herding/bandwagon effect and overreaction towards new inform

Herding/Bandwagon Effect: This is the tendency for individual traders to mimic the actions (rational or irrational) of the market. Individually, the trader would not necessari

Black-scholes-merton formula

Suppose you hold LLL employee stock options representing options to buy 11,600 shares of LLL stock. LLL accountants estimated the value of these options using the Black-Scho


Write a Review

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd