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Exhibit 41
the Balance Sheet and Income Statement Shown Below Are

question 92

Multiple Choice

Exhibit 4.1
The balance sheet and income statement shown below are for Koski Inc.Note that the firm has no amortization charges,it does not lease any assets,none of its debt must be retired during the next 5 years,and the notes payable will be rolled over.  Assets 2018 Cash and securities $3,000 Accounts receivable 15,000 Inventories 18,000 Total current assets $36,000 Net plant and equipment $24,000 Total assets $60,000 Liabilities and Equity  Accounts payable $18,630 Accruals 8,370 Notes payable 6,000 Total current liabilities $33,000 Long-term bonds $9,000 Total liabilities $42,000 Common stock $5,040 Retained earnings 12,960 Total common equity $18,000 Total liabilities and equity $60,000\begin{array}{lc}\text { Assets } & 2018 \\\text { Cash and securities } & \$ 3,000 \\\text { Accounts receivable } & 15,000 \\\text { Inventories } & 18,000 \\\text { Total current assets } & \$ 36,000 \\\text { Net plant and equipment } & \$ 24,000 \\\text { Total assets } & \$ 60,000\\\text { Liabilities and Equity }\\\text { Accounts payable } & \$ 18,630 \\\text { Accruals } & 8,370 \\\text { Notes payable } & 6,000 \\\text { Total current liabilities } & \$ 33,000\\\\\text { Long-term bonds } & \$ 9,000 \\\text { Total liabilities } & \$ 42,000 \\\text { Common stock } & \$ 5,040 \\\text { Retained earnings } & 12,960 \\\text { Total common equity } & \$ 18,000\\\text { Total liabilities and equity }&\$60,000\end{array}
 Income Statement (Millions of $ )  2018 Net sales $84,000 Operating costs except depreciation 78,120 Depreciation 1,680 Earnings before interest and taxes (EBIT)  $4,200 Less interest 900 Earnings before taxes (EBT)  $3,300 Taxes 1,320 Net income $1,980 Other data:  Shares outstanding (millions)  500.00 Common dividends (millions of $ )  $693.00 Int rate on notes payable & L-T bonds 6% Federal plus state income tax rate 40% Year-end stock price $47.52\begin{array}{lr}\text { Income Statement (Millions of } \$ \text { ) } & {2018} \\ \text { Net sales } & \$ 84,000 \\\text { Operating costs except depreciation } & 78,120 \\\text { Depreciation } & 1,680 \\\text { Earnings before interest and taxes (EBIT) } & \$ 4,200 \\\text { Less interest } & 900\\\text { Earnings before taxes (EBT) } &{\$ 3,300} \\\text { Taxes } & 1,320 \\\text { Net income } & \$ 1,980\\\\\text { Other data: }\\\text { Shares outstanding (millions) } & 500.00 \\\text { Common dividends (millions of } \$ \text { ) } & \$ 693.00 \\\text { Int rate on notes payable \& L-T bonds } & 6 \% \\\text { Federal plus state income tax rate } & 40 \% \\\text { Year-end stock price } & \$ 47.52\end{array}
-Refer to Exhibit 4.1.What is the firm's TIE? Do not round your intermediate calculations.

Definitions:

Postabsorptive State

The metabolic period occurring after the complete digestion and absorption of a meal, when the body begins utilizing stored nutrients for energy.

Glycogen

A large, branched polysaccharide made of glucose molecules, serving as a form of energy storage in humans, animals, fungi, and bacteria.

Glucose

An elementary sugar which is a significant source of energy within living beings and is involved in the formation of lots of carbohydrates.

Primary Energy Source

The main fuel used by cells to generate ATP, such as glucose in humans for aerobic metabolism.

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