1 rickroll juice inc has assets of 4500000

Question

1. Rickroll Juice Inc. has assets of $4,500,000, liabilities of $2,400,000, and $300,000 in preferred stock outstanding.  There have been 300,000 shares of common stock issued. 

a. Compute the book value per share

b. If the firm has earnings per share of $2.50 and a P/E ratio of 8, what is the stock price per share?

c. What is the ratio of market value per share to book value per share? 

d. Which value is considered more of a primary concern to the financial manager, security analyst and stockholders?

2. Calculate the 13 different financial ratios found in Chapter 3 given the following information (assume a 360 day year):

Jason Corporation
Balance Sheet
12/31/2012
Assets
Current Assets:
Cash	$150,000
Marketable securities	80,000
Accounts receivable (net)	520,000
Inventory	410,000
Total current assets	1,160,000
Investments	240,000
Net plant and equipment	900,000
Total assets	2,300,000
Liabilities and Stockholders' Equity
Current liabilities:
Accounts payable	275,000
Notes payable	150,000
Accrued taxes	65,000
Total current liabilities	490,000
Long-term liabilities:
Bonds payable	460,000
Total liabilities	950,000
Stockholders equity
Preferred stock, $100 par value	300,000
Common stock, $5 par value	100,000
Capital paid in excess of par	420,000
Retained earnings	530,000
Total stockholders equity	1,350,000
Total liabilities and stockholders' equity	2,300,000

 

Jason Corporation
Income Statement
For the Year Ending 12/31/2012
Sales (on credit)	$5,200,000
Less:  Cost of goods sold	3,300,000
Gross profit	1,700,000
Less:  Selling and admin expenses*	1,200,000
Operating profit (EBIT)	500,000
Less:  Interest expense	80,000
Earnings before taxes (EBT)	420,000
Less:  Taxes	147,000
Earnings after taxes (EAT)	273,000
*includes lease payment	100,000

Please find each of the following: 

a	Profit margin
b	Return on assets
c	Return on equity
d	Receivables turnover
e	Average collection period
f	Inventory turnover
g	Fixed asset turnover
h	Total asset turnover
i	Current ratio
j	Quick ratio
k	Debt to total assets
l	Times interest earned
m	Fixed charge coverage

3. Platetech only sells one product and they project to sell 6500 units next year at $60 each.  They currently have 500 units in stock which cost $18 per unit to manufacture last year.  Next year, the cost per unit to manufacture is expected to rise to $22 per unit.  They desire to have 20% of unit sales in stock at the end of the year. 

a. How many units will Platetech need to produce next year? 

b. What is the projected total cost of goods sold for next year?

c. What is the projected total gross profit?

4. Peter Inc. has forecast credit sales for the fourth quarter of the year as:

September (actual)     $240,000

  Fourth Quarter

October         $160,000

November          $380,000

December    $340,000

Experience has shown that 20 percent of sales receipts are collected in the month of sale and 75 percent in the following month, and 5 percent are never collected.  Prepare a schedule of cash receipts for Griffin Inc. covering the fourth quarter (October through December).

5. Given the following financial statements for Bravo, Inc. answer the questions below:

AMC, Inc.
Balance Sheets
for the Year Ending December 31, 2011

	2010	2011
Cash	$400,000	$300,000
Accounts receivable	$900,000	$850,000
Inventories	$1,100,000	$1,250,000
Total current assets	$2,400,000	$2,400,000
Plant and equipment	$4,400,000	$5,200,000
Less:  accumulated depreciation	$2,000,000	$2,400,000
Net plant and equipment	$2,400,000	$2,800,000
Total assets	$4,800,000	$5,200,000
Accounts payable	$400,000	$300,000
Notes payable current (9%)	$0	$300,000
Total current liabilities	$400,000	$600,000
Bonds (8  1/3%)	$1,200,000	$1,200,000
Common stock	$600,000	$600,000
Retained earnings	$2,600,000	$2,800,000
Total liabilities and common equity	$4,800,000	$5,200,000

AMC, Inc.
Income Statements
for the Year Ending December 31, 2011

	2010	2011
Sales	$2,400,000	$2,900,000
Cost of goods sold	$1,400,000	$1,700,000
Gross margin	$1,000,000	$1,200,000
Operating Expenses
Marketing	$20,000	$30,000
General and administrative	$40,000	$50,000
Depreciation	$440,000	$400,000
Total operating expense	$500,000	$480,000
Net operating income	$500,000	$720,000
Interest expense	$100,000	$128,000
Net Income before taxes	$400,000	$592,000
Taxes (40%)	$160,000	$236,800
Net Income	$240,000	$355,200

1.  
   1. What is AMC's total sales revenue for 2011?
   2. What is AMC's EBIT for 2011?
   3. Where would AMC's  total marketing and general and administrative expenses be shown?
   4. Can you determine the dividends paid for 2011 from the financial statements?
   5. How much additional capital equipment did AMC  purchase in 2011?
   6. What is AMC's total liability?
   7. What is AMC's total equity?