Use the following financial statements for Lake of Egypt Marina, Inc. LAKE OF EGYPT MARINA, INC. Balance Sheet...

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Finance

Use the following financial statements for Lake of Egypt Marina,Inc.

LAKE OF EGYPT MARINA, INC.
Balance Sheet as of December 31, 2021 and2020
(in millions of dollars)
2021202020212020
AssetsLiabilities and Equity
Current assets:Current liabilities:
Cash and marketable securities$75$65Accrued wages and taxes$40$43
Accounts receivable115110Accounts payable9080
Inventory200190Notes payable8070
Total$390$365Total$210$193
Fixed assets:Long-term debt:$300$280
Gross plant and equipment$580$471Stockholders’ equity:
Less: Depreciation110100Preferred stock (5 million shares)$5$5
Net plant and equipment$470$371Common stock and paid-in surplus
(65 million shares)6565
Other long-term assets5049Retained earnings330242
Total$520$420Total$400$312
Total assets$910$785Total liabilities and equity$910$785
LAKE OF EGYPT MARINA, INC.
Income Statement for Years Ending December 31, 2021and 2020
(in millions of dollars)
20212020
Net sales (all credit)$515$432
Less: Cost of goods sold230175
Gross profits$285$257
Less: Other operating expenses3025
Earnings before interest, taxes, depreciation, and amortization(EBITDA)$255$232
Less: Depreciation2220
Earnings before interest and taxes (EBIT)$233$212
Less: Interest3330
Earnings before taxes (EBT)$200$182
Less: Taxes4255
Net income$158$127
Less: Preferred stock dividends$5$5
Net income available to common stockholders$153$122
Less: Common stock dividends6565
Addition to retained earnings$88$57
Per (common) share data:
Earnings per share (EPS)$2.354$1.877
Dividends per share (DPS)$1.000$1.000
Book value per share (BVPS)$6.077$4.723
Market value (price) per share (MVPS)$14.750$12.550


Calculate the following ratios for Lake of Egypt Marina, Inc. as ofyear-end 2021. (Use sales when computing the inventoryturnover and use total stockholders' equity when computing theequity multiplier. Round your answers to 2 decimal places. Use 365days a year.)

Profit Margin) (answer is not 30.68 or 55.33)

ROA) (answer is not 17.36 or 18.64 or 18.05)

Days sales in inventory) (the answer is not 309.46 or 138.21 or1.179 or 1.18)

ROE) (the answer is not 38.25 or 44.38 or 39.50)

Answer & Explanation Solved by verified expert
4.2 Ratings (897 Votes)
Average Inventory 190200 2195Inventory turnover Ratio Sales Average Inventory 515 195 264 times it can be done by taking Cost of Goods    See Answer
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