Pettijohn Inc.The balance sheet and income statement shown below are for Pettijohn Inc. Note that the firm has no amortization charges, it does not lease any assets, none of its debt must be retired during the next 5 years, and the notes payable will be rolled over.
Balance Sheet (Millions of $) Assets2016
Cash and securities$ 1,554.0
Accounts receivable9,660.0
Inventories 13,440.0
Total current assets$24,654.0
Net plant and equipment 17,346.0
Total assets$42,000.0
Liabilities and Equity Accounts payable$ 7,980.0
Notes payable5,880.0
Accruals 4,620.0
Total current liabilities$18,480.0
Long-term bonds 10,920.0
Total liabilities$29,400.0
Common stock3,360.0
Retained earnings 9,240.0
Total common equity$12,600.0
Total liabilities and equity$42,000.0
Income Statement (Millions of $)2016
Net sales$58,800.0
Operating costs except depr'n$55,274.0
Depreciation$ 1,029.0
Earnings bef int and taxes (EBIT)$ 2,497.0
Less interest 1,050.0
Earnings before taxes (EBT)$ 1,447.0
Taxes$ 314.0
Net income$ 1,133.0
Other data: Shares outstanding (millions)175.00
Common dividends$ 509.83
Int rate on notes payable & L-T bonds6.25%
Federal plus state income tax rate21.7%
Year-end stock price$77.69
Refer to the data for Pettijohn Inc. What is the firm's equity multiplier?
A. 3.33
B. 3.50
C. 3.68
D. 3.86
E. 4.05
Answer: A
You might also like to view...
"The Ultra Black Label series is a premium mobile phone made out of real stainless steel and complemented by multi-angle vision technology. This advanced technology allows you to view the screen contents from different angles. With the Ultra phone, you'll always be able to view the display and will never be out of touch." In what order are the features, benefits, and advantages presented in the statement?
A. Feature, advantage, and benefit B. Feature, benefit, and advantage C. Advantage, benefit, and feature D. Benefit, advantage, and feature E. Advantage, feature, and benefit
Answer the following statements true (T) or false (F)
1. One responsibility of a nonprofit chief executive officer is to select new members of the board of directors. 2. A chief executive officer’s responsibilities include both managing and leading the organization. 3. Trait theories emphasize the business experience of the nonprofit leader. 4. Behavior theories include task and relationship activities. 5. Servant leadership places emphasis on values and commitment.
A corporation has no constitutional protection against unreasonable searches and seizures
a. True b. False Indicate whether the statement is true or false
Design capacity is the theoretical maximum output of a system in a given period under ideal conditions
Indicate whether the statement is true or false