Luther Corporation: Consolidated Balance Sheet

[sarasara]

Use the table for the question(s) below.

Luther Corporation Consolidated Balance Sheet December 31, 2006 and 2005 (in $ millions)

Assets	2006	2005	​	Liabilities and Stockholders' Equity	2006	2005
Current Assets	​	​	​	Current Liabilities	​	​
Cash	63.6	58.5	​	Accounts payable	87.6	73.5
Accounts receivable	55.5	39.6	​	Notes payable / short-term debt	10.5	9.6
Inventories	45.9	42.9	​	Current maturities of long-term debt	39.9	36.9
Other current assets	6.0	3.0	​	Other current liabilities	6.0	12.0
Total current assets	171.0	144.0	​	Total current liabilities	144.0	132.0
​	​	​	​	​	​	​
Long-Term Assets	​	​	​	Long-Term Liabilities	​	​
Land	66.6	62.1	​	Long-term debt	239.7	168.9
Buildings	109.5	91.5	​	Capital lease obligations	---	---
Equipment	119.1	99.6	​	Total Debt	239.7	168.9
Less accumulated   depreciation	(56.1)	(52.5)	​	Deferred taxes	22.8	22.2
Net property, plant, and equipment	239.1	200.7	​	Other long-term liabilities	---	---
Goodwill	60.0	--	​	Total long-term liabilities	262.5	191.1
Other long-term assets	63.0	42.0	​	Total liabilities	406.5	323.1
Total long-term assets	362.1	242.7	​	Stockholders' Equity	126.6	63.6
​	​	​	​	​	​	​
Total Assets	533.1	386.7	​	Total liabilities and Stockholders' Equity	533.1	386.7

Refer to the balance sheet above.  What is Luther's net working capital in 2005?
◦ $12 million
◦ $27 million
◦ $39 million
◦ $63.6 million

[stano32]

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[sarasara]

Excellent

[stano32]

Great! Please up vote

[Lisaclaire]

Use the table for the question(s) below.

Luther Corporation Consolidated Balance Sheet December 31, 2006 and 2005 (in $ millions)

Assets	2006	2005	​	Liabilities and Stockholders' Equity	2006	2005
Current Assets	​	​	​	Current Liabilities	​	​
Cash	63.6	58.5	​	Accounts payable	87.6	73.5
Accounts receivable	55.5	39.6	​	Notes payable / short-term debt	10.5	9.6
Inventories	45.9	42.9	​	Current maturities of long-term debt	39.9	36.9
Other current assets	6.0	3.0	​	Other current liabilities	6.0	12.0
Total current assets	171.0	144.0	​	Total current liabilities	144.0	132.0
​	​	​	​	​	​	​
Long-Term Assets	​	​	​	Long-Term Liabilities	​	​
Land	66.6	62.1	​	Long-term debt	239.7	168.9
Buildings	109.5	91.5	​	Capital lease obligations	---	---
Equipment	119.1	99.6	​	Total Debt	239.7	168.9
Less accumulated   depreciation	(56.1)	(52.5)	​	Deferred taxes	22.8	22.2
Net property, plant, and equipment	239.1	200.7	​	Other long-term liabilities	---	---
Goodwill	60.0	--	​	Total long-term liabilities	262.5	191.1
Other long-term assets	63.0	42.0	​	Total liabilities	406.5	323.1
Total long-term assets	362.1	242.7	​	Stockholders' Equity	126.6	63.6
​	​	​	​	​	​	​
Total Assets	533.1	386.7	​	Total liabilities and Stockholders' Equity	533.1	386.7

Refer to the balance sheet above.  If in 2006 Luther has 10.2 million shares outstanding and these shares are trading at $16 per share, then Luther's market-to-book ratio would be closest to:
◦ 0.39
◦ 0.76
◦ 1.29
◦ 2.57

[fauacakatahaias]

1.29

[Lisaclaire]

Thanks

[fauacakatahaias]

Welcome

[cmoore54]

Use the table for the question(s) below.

Luther Corporation Consolidated Balance Sheet December 31, 2006 and 2005 (in $ millions)

Assets	2006	2005	​	Liabilities and Stockholders' Equity	2006	2005
Current Assets	​	​	​	Current Liabilities	​	​
Cash	63.6	58.5	​	Accounts payable	87.6	73.5
Accounts receivable	55.5	39.6	​	Notes payable / short-term debt	10.5	9.6
Inventories	45.9	42.9	​	Current maturities of long-term debt	39.9	36.9
Other current assets	6.0	3.0	​	Other current liabilities	6.0	12.0
Total current assets	171.0	144.0	​	Total current liabilities	144.0	132.0
​	​	​	​	​	​	​
Long-Term Assets	​	​	​	Long-Term Liabilities	​	​
Land	66.6	62.1	​	Long-term debt	239.7	168.9
Buildings	109.5	91.5	​	Capital lease obligations	---	---
Equipment	119.1	99.6	​	Total Debt	239.7	168.9
Less accumulated   depreciation	(56.1)	(52.5)	​	Deferred taxes	22.8	22.2
Net property, plant, and equipment	239.1	200.7	​	Other long-term liabilities	---	---
Goodwill	60.0	--	​	Total long-term liabilities	262.5	191.1
Other long-term assets	63.0	42.0	​	Total liabilities	406.5	323.1
Total long-term assets	362.1	242.7	​	Stockholders' Equity	126.6	63.6
​	​	​	​	​	​	​
Total Assets	533.1	386.7	​	Total liabilities and Stockholders' Equity	533.1	386.7

Refer to the balance sheet above.  When using the book value of equity, the debt-equity ratio for Luther in 2006 is closest to:
◦ 2.21
◦ 2.29
◦ 2.98
◦ 3.03

[Mholman93]

2.29