Use the Tables for the Question(s)below

question 4

Multiple Choice

Use the tables for the question(s) below.
Pro Forma Income Statement for Ideko, 2013-2018
Pro Forma Assets & Liabilities for Ideko, 2013-2018

-Assuming that Ideko has a EBITDA multiple of 9.4, then the continuation unlevered price-earnings ratio of Ideko in 2018 is closest to:

• A)26.6
• B)14.5
• C)16.4
• D)17.2

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Definitions:

Accounts Receivable

Money owed to a business by its customers for goods or services delivered or used but not yet paid for.

Operating Cycle

The duration between the acquisition of inventory and the collection of cash from receivables, indicating the time needed to sell inventory and collect cash.

Inventory

The cumulative quantity of products and materials in a company's possession intended for either direct sale or use in manufacturing.

Accounts Receivable

Accounts receivable represents the money owed to a company by its customers for goods or services delivered but not yet paid for.