Southeastern IT Systems has the following balance sheet and the income statement. The company had...
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Accounting
Southeastern IT Systems has the following balance sheet and the income statement. The company had 10 million shares of common stock outstanding and its market price of the common stock was $380.25 at the end of 2014. Make sure the unit is in million dollars. Make sure the unit is in million dollars.
(unit: $ in millions)
Southeastern IT Systems
Balance Sheets
2013
2014
2013
2014
Cash
$1,000
$1,200
Accounts payable
$800
$850
Accounts receivable
6,500
7,500
Notes payable
7,500
8,000
Inventory
1,500
2,000
Current liabilities
8,300
8,850
Current assets
9,000
10,700
Long-term debt
1,000
1,000
Net fixed assets
3,000
3,500
Common equity
500
500
Retained earnings
2,200
3,850
Total Assets
$12,000
$14,200
Total Liabilities & Owners Equity
$12,000
$14,200
Income Statement
2014
Net sales
$15,000
Cost of goods sold
10,000
Depreciation
700
EBIT
4,300
Interest expenses
400
Taxable income
3,900
Taxes
1,365
Net income
$2,535
Dividends
( )
What is the value of the D/E ratio for 2014?
69.37%
7.04%
226.44%
144.16%
Answer & Explanation
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