Redbird, Inc. 2016 Income Statement (In Millions of US Dollars)
Net sales $9,625
Less: Cost of goods sold 5,225
Less: Depreciation 1,890
Earnings before interest and taxes $2,510
Less: Interest paid 850
Taxable Income $1,660
Less: Taxes 581
Net Income $1,079
Additions to retained earnings $670
Dividends paid $400
Redbird, Inc. Balance Sheets (12/31/15 and 12/31/16) (In Millions of US Dollars)
2015 2016 2015 2016
Cash $1,455 $260 Accounts Payable $1,150 $2,863
Accounts Rec. 2,460 3,975 Accruals 2,600 1,628
Inventory 1,405 1,885 Current Liabilities $3,750 $4,491
Current Assets $5,320 $5,120 Long-term Debt 7,000 7,600
Net Fixed Assets $19,300 $21,720 Common Stock 5,500 5,700
Retained Earnings 8,370 9,049
Total Assets $24,620 $26,840 Total Debt & Equity $24,620 $26,840
What is the firm's net capital spending for 2016?
A. $19,830
B. $4,310
C. $2,420
D. $530
What is the firm's change in net working capital for 2016?
A. $366
B. $719
C. –$200
D. –$941
What is the firm's cash flow to stockholders for 2016?
A. $ 0
B. $200
C. $400
D. $600
What is the firm's cash flow from assets for 2016?
A. $3,819
B. $450
C. -$291
D. -$1,432
Calculate the firm’s cash ratio at the end of 2016.
A. 0.051
B. 0.058
C. 0.943
D. 0.988
Calculate the firm’s 2016 days’ costs in payables based on the payables balance at the end of 2016. Use a 365-day year.
A. 90 days
B. 109 days
C. 200 days
D. 278 days
Calculate the firm’s 2016 capital intensity ratio.
A. 6.028
B. 5.904
C. 3.719
D. 2.789
Which of the following shows the correct calculation of the firm’s 2013 DuPont Identity?
A. ($2,510/$14,749) x ($14,749/$26,840) x ($26,840/$5,700)
B. ($1,079/$9,625) x ($9,625/$12,091) x ($12,091/$7,600)
C. ($1,079/$9,625) x ($9,625/$26,840) x ($26,840/$14,749)
D. ($1,079/$2,510) x ($2,510/$7,600) x ($7,600/$9,049)
The firm’s 2016 DPS (dividends per share) is $4.00. What is the firm’s 2016 EPS (earnings per share)?
A. Can’t be determined.
B. 0.371 times
C. 67.9%
D. $10.79
At the end of 2016 the firm’s stock price is $150 per share. Calculate the firm’s 2016 Market-to-Book Ratio.
A. 1.017
B. 1.658
C. 2.632
D. 13.902