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

Related Discussions:- Calculate the equity multipler, acid ratio, current ratio, Assignment Help, Ask Question on Calculate the equity multipler, acid ratio, current ratio, Get Answer, Expert's Help, Calculate the equity multipler, acid ratio, current ratio Discussions

Write discussion on Calculate the equity multipler, acid ratio, current ratio
Your posts are moderated
Related Questions
Q. What do you mean by suspense account? How are errors in accounting classified? Suspense account: A suspense account is an account, which is opened when the trail balance does

Equity shareholders, potential and present, seem primarily to the company's record of earnings. They are thus interested in relationships as earnings per share or EPS and dividends

A changeable instrument is deemed part liability and part equity. IAS 32 necessitate that each part is measured individually on initial recognition. The liability element is

The discount rate used must normally reflect the weighted average cost of equity and debt taking into account the systematic risk of the investment. A company's weighted average co

Investment with cum.div. Quotation Investment with cum.div. Quotation will be debited to the investment account at its full value. When the dividend is subsequently received it

Describe the accounting concept of a business combination. Business Combination: According to International Financial Reporting Standard-3 Business Combinations "A busi

Simons Corp has unadjusted net income from continuing operations before tax of $168,000 before the following items were entered in the accounting records in 2013: 1. Unrealized

The non current asset section of Aadil & Co. at December 31, 2005 is as under:- Land Rs. 1,000,000 Office equipment Rs. 5,000,000 Less: accumulated depreciation 250,000 4,75

INVESTMENT OF FUNDS TO PROVIDE FOR LEGACIES AND INTEREST ON LEGACIES (a) Where a general legacy is given for life, the sum bequeathed shall, at or before the end of a year afte