The balance sheet and income statement shown below are for pettijohn 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.
balance sheet (millions of $)
assets 2016
cash and securities $ 1,554.0
accounts receivable 9,660.0
inventories 13,440.0
total current assets $24,654.0
net plant and equipment 17,346.0
total assets $42,000.0
liabilities and equity accounts payable $ 7,980.0
notes payable 5,880.0
accruals 4,620.0
total current liabilities $18,480.0
long-term bonds 10,920.0
total liabilities $29,400.0
common stock 3,360.0
retained earnings 9,240.0
total common equity $12,600.0
total liabilities and equity $42,000.0
income statement (millions of $) 2016
net sales $58,800.0
operating costs except depreciation $54,978.0
depreciation $ 1,029.0
earnings bef int and taxes (ebit) $ 2,793.0
less interest 1,050.0
earnings before taxes (ebt) $ 1,743.0
taxes $ 610.1
net income $ 1,133.0
other data:
shares outstanding (millions) 175.00
common dividends $ 509.83
int rate on notes payable & l-t bonds 6.25%
federal plus state income tax rate 35%
year-end stock price $77.69
required:
refer to the data for pettijohn inc:
1. what is the firm's roa?
2. what is the firm's current ratio?
3. what is the firm's quick ratio?
4. what is the firm's inventory turnover ratio?

Classifying inflows and outflows of cash classify each of the following items as an inflow (i) or an outflow (o) of cash, or as neither (n). lg 2 lg 2 item change ($) item change ($) cash +100 accounts receivable −700 accounts payable −1,000 net profits +600 notes payable +500 depreciation +100 long-term debt −2,000 repurchase of stock +600 inventory +200 cash dividends +800 fixed assets +400 sale of stock +1,000

You have just received notification that you have won the $2.0 million first prize in the centennial lottery. however, the prize will be awarded on your 100th birthday (assuming you're around to collect), 66 years from now. what is the present value of your windfall if the appropriate discount rate is 8 percent?

Onsider the following subscription behavior information from genie, a web site that provides tools for constructing a family tree (ancestor search). subscriptions cost $9.99 per month, but you are charged for the entire year at the time of purchase. there is a one-year minimum term when you sign up for the service. once purchased, subscriptions are set to renew automatically unless the subscriber cancels them. when a membership renews, it renews for a one-year term and again you are charged for the entire year. there are no variable costs associated with providing this service to an individual customer, but genie does engage in customer relationship activities that they believe will increase customer retention. these customer relationship activities cost genie about $10 per year per customer. based on a sample of 1000 customers that joined genie five years ago, near the time when the company was founded, they were able to determine how many of those customers remained subscribers in the second year, third year etc. based on this information, genie calculated the average annual retention rate to be 20%. genie uses an annual discount rate of 8%. a. last year, genie spent $10,000 placing advertisements on google. genie management believes that these advertisements were responsible for about 300 new subscribers. would you recommend to genie management that they purchase more google ads? b. suppose a newly-introduced loyalty program increases the number of customers that remained to 30%. does this new data change your answer to 9.a? c. do you have any hesitations or concerns about making recommendations to management based on your above estimate of customer lifetime value?