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ASSIGNMENT ONE: Q.1. Listed below are the balance sheet and income statement for Marion & Carter, Inc. Use these financial statements to calculate liquidity, asset management, debt management, profitability, and market value ratios for 2012. Calculate 3 ratios in each category MARION &CARTER, INC. Balance Sheet as of December 31, 2012 and 2011 (in millions of dollars) 2012 2011 2012 2011 Assets Current assets: Liabilities and Equity Current liabilities: Cash and marketable securities Accounts receivable Accrued wages and taxes Accounts payable Notes payable 95 310 280 $ 685 $1,178 360 620 $1,175 $1,290 $ 806 $1,210 Total Total Fixed assets Long term debt: Stockholders equity: Gross plant and equipment Net plant and equipment Other long term assets $2,280 $1,860 330 $1.950 250 $1,610 Preferred stock (25 million shares) Common stock and paid in surplus (200 million shares) 250 250 Retained earnings 350310 $1.920 1,2 $1.574 Total $2.300 Total $1,232 Total assets 53.590 3.095 Total liabilities and equity MARION & CARTER, INC. Income Statement for Years Ending December 31, 2012 and 2011 (in millions of dollars) 2012 2,053 $ 1,112 2011 1,705 Net sales (all credit) Less: Cost of goods sold Gross profits Less: Depreciation 755 80 Other operating expenses 82 $ 793 112 $ 681 248 $ 943 Earnings before interest and taxes (EBIT) Less: Interest Earnings before taxes (EBT Less: Taxes Net income Less: Preferred stock dvidends Net income available to common stockholders Less: Common stock dividends Addition to retained earnings Per (common) share data $ 844 285 $ 371 $ 342 Earnings per share (EPS) Dvidends per share (DPS) Book value per share (BVPS) Market value (price) per share (MVPS) 2.485 $ 0.775 7.745 $22.970 $ 1.855 o.775 $6.035 $21.470

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