| | | Lake Cairo Marina, Inc.
Balance Sheet as of December 31, 2015 and 2014 (in millions of dollars) |
| | all values in $1,000,000's | Balance Sheet |
| | | 2015 | | | 2014 |
| | Assets |
| | Current Assets | | | | |
| | Cash and marketable securities | $ 85 | 7.73% | | $ 75 | 7.50% |
| | Accounts receivable | $ 150 | 13.64% | | $ 125 | 12.50% |
| | Inventory | $ 245 | 22.28% | | $ 220 | 22.00% |
| | Total current assets | $ 480 | 43.65% | | $ 420 | 42.00% |
| | Fixed assets |
| | Gross plant and equipment | $ 710 | 64.56% | | $ 650 | 65.00% |
| | Less: depreciation | $ (151) | -13.75% | | $ (125) | -12.50% |
| | Net fixed assets | $ 559 | 50.81% | | $ 525 | 52.50% |
| | Other long term assets | $ 61 | 5.55% | | $ 55 | 5.50% |
| | Total Assets | $ 1,100 | 100.00% | | $ 1,000 | 100.00% |
| | Liabilities and Equity |
| | Current liabilities |
| | Accrued Wages and Taxes | $ 50 | 4.55% | | $ 50 | 5.00% |
| | Accounts Payable | $ 120 | 10.91% | | $ 110 | 11.00% |
| | Notes Payable | $ 95 | 8.64% | | $ 90 | 9.00% |
| | Total current liabilities | $ 265 | 24.10% | | $ 250 | 25.00% |
| | Long-term debt | $ 400 | 36.37% | | $ 380 | 38.00% |
| | Total Liabilities | $ 665 | 60.47% | | $ 630 | 63.00% |
| | Stockholders’ equity |
| | Common stock and paid in surplus
(70 million shares @ $1 par) | $ 70 | 6.37% | | $ 70 | 7.00% |
| | Retained earnings | $ 365 | 33.21% | | $ 300 | 30.00% |
| | Total Equity | $ 435 | 39.57% | | $ 370 | 37.00% |
| | Total Liabilities and Equity | $ 1,100 | 100.04% | | $ 1,000 | 100.00% |
| | | Lake Cairo Marina, Inc.
Balance Sheet as of December 31, 2015 and 2014 (in millions of dollars) |
| | | Income Statement |
| | | 2015 | | | 2014 |
| | Net sales (all credit) | $ 610 | 100.00% | | $ 575 | 100.00% |
| | Less cost of goods sold | $ 275 | 45.08% | | $ 260 | 45.22% |
| | Gross profits | $ 335 | 54.92% | | $ 315 | 54.78% |
| | Less other operating expenses | $ 75 | 12.30% | | $ 70 | 12.17% |
| | Earnings before interest, taxes, depreciation, and amortization (EBITDA) | $ 260 | 42.62% | | $ 245 | 42.61% |
| | Less: Depreciation | $ 28 | 4.58% | | $ 26 | 4.57% |
| | Earnings before interest and taxes (EBIT) | $ 232 | 38.04% | | $ 219 | 38.04% |
| | Less interest | $ 14 | 2.28% | | $ 23 | 3.97% |
| | Earnings before taxes (EBT) | $ 218 | 35.76% | | $ 196 | 34.08% |
| | Less taxes | $ 68 | 11.09% | | $ 61 | 10.56% |
| | Net Income available to common stockholders | $ 151 | 24.67% | | $ 135 | 23.51% |
| | Less common stock dividends | $ 70 | 11.48% | | $ 70 | 12.17% |
| | Additions to retained earnings | $ 81 | 13.20% | | $ 65 | 11.34% |
| | Per (common) share data: | 0 | | | 0 |
| | Earnings per share(EPS) | $ 2.150 | | | $ 1.932 |
| | Dividends per share (DPS) | $ 1.000 | | | $ 1.000 |
| | Book value per share (BVPS) | $ 6.217 | | | $ 5.286 |
| | Market value (price) per share (MVPS) | $ 31.00 | | | $ 26.50 |
| INSTRUCTIONS: Fill in all the yellow cells.
Calculate the 25 financial ratios for Lake Cairo Marina, Inc. based on the data given in the 2015 financial statements.
If a ratio is expected to be a percentage, show the percentage value, not the decimal value.
Use the definitions for the ratios as presented in Chapter 3 of the M Finance text.
(The text also provides examples of the ratio calculations.) |
| | formula | Lake Cairo Marina, Inc.
Balance Sheet as of December 31, 2015 and 2014 (in millions of dollars) | | | | | How does the company's ratio compare to the industry average? |
| | (several are filled in as examples) | Marina ratio | | Industry average | | | higher / lower? better / worse? |
| Current ratio | | | | 2.00 | times |
| Quick ratio | | | | 1.20 | times |
| Cash ratio | | | | 0.25 | times |
| Inventory turnover ratio (based on COGS) | cost of goods sold / inventory | | | 1.61 | times |
| Days' sales in inventory (based on COGS) | (inventory x 365) / cost of goods sold | | | 310.15 | days |
| Average collection period | | | | 32.50 | days |
| Average payment period | | | | 45.00 | days |
| Fixed asset turnover | | | | 1.25 | times |
| Sales to working capital | | | | 4.25 | times |
| Total asset turnover | | | | 0.85 | times |
| Capital intensity | | | | 1.18 | times |
| Debt ratio | total liabilities/total assets | | | 62.50 | % |
| Debt-to-equity | total liabilities/total equity | | | 1.67 | times |
| Equity multiplier | | | | 2.67 | times |
| Times interest earned | | | | 8.5 | times |
| Cash coverage | | | | 8.75 | times |
| Profit margin | | | | 27.75 | % |
| Gross profit margin | | | | 56.45 | % |
| Operating profit margin | | | | 46.78 | % |
| Basic earnings power | | | | 32.5 | % |
| Return on Assets | | | | 19.75 | % |
| Return on Common Equity | | | | 36.88 | % |
| Dividend payout | | | | 35.00 | % |
| Market-to-book ratio | | | | 2.55 | times |
| PE ratio | | | | 15.60 | times |
helnja
lakecairo_worksheet-2.xlsx
