Luther Corporation: Consolidated Balance Sheet

[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 using the market value of equity, the debt-equity ratio for Luther in 2006 is closest to:
◦ 1.71
◦ 1.78
◦ 2.31
◦ 2.35

[gstein359]

1.78

[Lisaclaire]

TY

[gstein359]

You're welcome

[clmills979]

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 what is Luther's enterprise value?
◦ -$63.3 million
◦ $353.1 million
◦ $389.7 million
◦ $516.9 million

[Jbrasil]

$389.7 million

[Zulu123]

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.  Luther's current ratio for 2006 is closest to:
◦ 0.84
◦ 0.87
◦ 1.15
◦ 1.19

[HandsomeMarc]

1.19

[Zulu123]

Thank you!

[HandsomeMarc]

Always glad to help...