Calculate the equity multipler, acid ratio, current ratio, Financial Accounting

Presented below are condensed financial statements adapted from those of two actual companies competing as the primary players in a specialty area of the food manufacturing and distribution industry. ($ in millions, except per share amounts.) Metropolitan and Republic , metro numbers first.

Metropolitan Republic

Assets $ 179.3 $ 37.1


Accounts receivable (net)

422.7 325.0

Short-term investments- 4.7

Inventories 466.4 635.2

Prepaid expenses and other current assets 134.6 476.7

Current assets $ 1,203.0 $ 1,478.7

Property, plant, and equipment (net) 2,608.2 2,064.6

Intangibles and other assets 210.3 464.7

Total assets $ 4,021.5 $ 4,008.0

Liabilities and Shareholders' Equity

Accounts payable $ 467.9 $ 691.2

Short-term notes 227.1 557.4

Accruals and other current liabilities 585.2 538.5

Current liabilities $ 1,280.2 $ 1,787.1

Long-term debt 535.6 542.3

Deferred tax liability 384.6 610.7

Other long-term liabilities 104.0 95.1

Total liabilities $ 2,304.4 $ 3,035.2

Common stock (par and additional paid-in capital) 144.9 335.0

Retained earnings 2,476.9 1,601.9

Less: treasury stock (904.7 ) (964.1 )

Total liabilities and shareholders' equity $ 4,021.5 $ 4,008.0

Income Statements

Net sales $ 5,698.0 $ 7,768.2

Cost of goods sold (2,909.0 ) (4,481.7 )

Gross profit $ 2,789.0 $ 3,286.5

Operating expenses (1,743.7 ) (2,539.2 )

Interest expense (56.8 ) (46.6 )

Income before taxes $ 988.5 $ 700.7

Tax expense (394.7 ) (276.1 )

Net income $ 593.8 $ 424.6


Net income per share $ 2.40 $ 6.50

calculate the equity multipler, acid ratio, current ratio, receivables ratio, inventory turnover ration and the times interest earnes ratio



Posted Date: 2/21/2014 12:09:47 AM | Location : United States

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