Below are the most recent financial statements for San Rafael Corporation. SAN RAFAEL CORPORATION Balance...
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Below are the most recent financial statements for San Rafael Corporation. SAN RAFAEL CORPORATION Balance Sheets as of December 31, 2015 and 2016 ($ in millions) 2015 2016 2015 2016 Assets Liabilities and Owners' Equity Current assets Current liabilities Cash $ 120 $ 88 Accounts payable $ 124 $ 144 Accounts Receivable $ 224 $ 192 Notes payable $ 1,412 $ 1,039 Inventory $ 424 $ 368 Total $ 1,536 $ 1,183 Total $ 768 $ 648 Long-term debt $ 1,804 $ 2,077 Owner's equity Common stock and paid-in surplus $ 300 $ 300 Fixed assets Retained earnings $ 2,356 $ 2,442 Net plant and equipment $ 5,228 $ 5,354 Total $ 2,656 $ 2,742 Total assets $ 5,996 $ 6,002 Total liabilities and owners' equity $ 5,996 $ 6,002 SAN RAFAEL CORPORATION 2016 Income Statement ($ in millions) Sales $ 3,756 Cost of goods sold $ 2,453 Depreciation $ 490 EBIT $ 813 Interest paid $ 613 Taxable income $ 200 Taxes (34%) $ 68 Net income $ 132 Dividends $ 46 Additions to retained earnings $ 86 Calculate the following ratios for 2016, and comment on your results: a) Current ratio b) Quick ratio c) Cash ratio d) Inventory turnover e) Receivables turnover f) Days sales in inventory g) Days sales in receivables h) Total debt ratio i) Times interest earned ratio j) Cash coverage ratio
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