|
|
|
IE Corporation
2008 and 2009 Balance Sheets
($ in million)
|
|
2008 2009
|
|
ASSETS
|
|
Current Assets:
Cash 210 215
Accounts receivable 355 310
Inventory 507 328
|
|
Total Current Assets 1,072 853
|
|
Fixed Assets:
Net plant and equipment 6,085 6,527
|
|
TOTAL ASSETS 7,157 7,380
|
|
Current Liabilities:
Accounts payable 207 298
Notes payable 1,715 1,427
|
|
Total Current Liabilities 1,922 1,725
|
|
Long-term debt 1,987 2,308
|
|
Owners' equity
Common stock 1,000 1,000
Retained earnings 2,248 2,347
|
|
Total Owners' Equity 3,248 3,347
|
|
TOTAL LIABILITIES and OWNERS' EQUIT' 7,157 7,380
|
|
|
|
IE Corporation
2009 Income Statementn)
|
|
Sales 4,053
Cost of goods sold 2,780
Depreciation 550
|
|
Earnings before interest and taxes 723
Interest paid 502
|
|
Taxable income 221
Taxes (34%) 75
|
|
Net income 146
|
|
Dividends 47
Addition to retained earnings 99
|
Construct a Vertical/Common- Size Analysis for 2009
Construct a Horizontal/Indexed Analysis
Calculate the following ratios:
Current ratio
Inventory turnover
DSO
Fixed assets turnover
Total assets turnover
Total debt to total assets
Times-interest-earned (TIE)
EBITDA coverage
Profit margin on sales
Basic earning power (BEP)
Return on total assets (ROA)
Return on common equity (ROE)
• Provide insights
• 1 Vertical
• 1 Horizontal
• 1 Ratio