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) |
| 2021 | | 2020 | | | 2021 | | 2020 |
Assets | | | | | | | | | Liabilities and Equity | | | | | | | |
Current assets: | | | | | | | | | Current liabilities: | | | | | | | |
Cash and marketable securities | $ | 75 | | | $ | 65 | | | Accrued wages and taxes | $ | 40 | | | $ | 43 | |
Accounts receivable | | 115 | | | | 110 | | | Accounts payable | | 90 | | | | 80 | |
Inventory | | 200 | | | | 190 | | | Notes payable | | 80 | | | | 70 | |
Total | $ | 390 | | | $ | 365 | | | Total | $ | 210 | | | $ | 193 | |
Fixed assets: | | | | | | | | | Long-term debt: | $ | 300 | | | $ | 280 | |
Gross plant and equipment | $ | 580 | | | $ | 471 | | | Stockholders’ equity: | | | | | | | |
Less: Depreciation | | 110 | | | | 100 | | | Preferred stock (5 million shares) | $ | 5 | | | $ | 5 | |
Net plant and equipment | $ | 470 | | | $ | 371 | | | Common stock and paid-in surplus | | | | | | | |
| | | | | | | | | (65 million shares) | | 65 | | | | 65 | |
Other long-term assets | | 50 | | | | 49 | | | Retained earnings | | 330 | | | | 242 | |
Total | $ | 520 | | | $ | 420 | | | Total | $ | 400 | | | $ | 312 | |
Total assets | $ | 910 | | | $ | 785 | | | Total liabilities and equity | $ | 910 | | | $ | 785 | |
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LAKE OF EGYPT MARINA, INC. | |
Income Statement for Years Ending December 31, 2021and 2020 | |
(in millions of dollars) | |
| 2021 | | 2020 |
Net sales (all credit) | $ | 515 | | | $ | 432 | |
Less: Cost of goods sold | | 230 | | | | 175 | |
Gross profits | $ | 285 | | | $ | 257 | |
Less: Other operating expenses | | 30 | | | | 25 | |
Earnings before interest, taxes, depreciation, and amortization(EBITDA) | $ | 255 | | | $ | 232 | |
Less: Depreciation | | 22 | | | | 20 | |
Earnings before interest and taxes (EBIT) | $ | 233 | | | $ | 212 | |
Less: Interest | | 33 | | | | 30 | |
Earnings before taxes (EBT) | $ | 200 | | | $ | 182 | |
Less: Taxes | | 42 | | | | 55 | |
Net income | $ | 158 | | | $ | 127 | |
Less: Preferred stock dividends | $ | 5 | | | $ | 5 | |
Net income available to common stockholders | $ | 153 | | | $ | 122 | |
Less: Common stock dividends | | 65 | | | | 65 | |
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 | |
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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)