Question

	Hillside, Inc.
	BALANCE SHEET						INCOME STATEMENT
	($ in millions)						($ in millions)
	ASSETS			LIABILITIES			Revenue	28,681.10
	Cash & Marketable Securities	449.90		Accounts Payable	1,611.20		Cost Of Goods Sold	20,768.80
	Accounts Receivable	954.80		Salaries Payable	225.20		Gross Profit	7,912.30
	Inventories	3,645.20		Other Current Liabilities	1,118.80
	Other Current Assets	116.60		Total Current Liabilities	2,955.20		Operating Expenses:
	Total Current Assets	5,166.50					Selling, General & Admin.	5,980.80
				Other Liabilities	693.40		Depreciation	307.30
	Machinery & Equipment	1,688.90					Operating income	1,624.20
	Land	1,129.70		Total Liabilities	3,648.60
	Buildings	2,348.40					Interest	-
	Depreciation	(575.60)		SHAREHOLDER'S EQUITY			Other Expense (Income)	(13.10)
	Property, Plant & Equip. - Net	4,591.40		Common Stock	828.50		Income Before Taxes	1,637.30
	Other Long Term Assets	120.90		Retained Earnings	5,401.70		Income Taxes	618.10
	Total Long-Term Assets	4,712.30		Total Shareholder's Equity	6,230.20		Net Income	1,019.20
	Total Assets	9,878.80		Total Liabilities & Equity	9,878.80
							Number of Common Stock
							Shares Outstanding	1,032,271
				Input Answers Below		Financial Performance Summary
	LIQUIDITY RATIOS
	Current Ratio (times)
	Quick Ratio (times)
	Average Payment Period (days)
	ASSET MANAGEMENT RATIOS
	Total Asset Turnover (times)
	Average Collection Period (days)
	Inventory Turnover (times)
	FINANCIAL LEVERAGE RATIOS
	Total Debt to Total Assets
	Equity Multiplier (times)
	PROFITABILITY RATIOS
	Operating Profit Margin
	Net Profit Margin
	Return on Total Assets
	Return on Equity
	Earnings per Share

Answer 1

LIQUIDITY RATIOS	Formula	Answer
Current Ratio (times)	=Current Assets/Current Liability	1.75	=5166.5/2955.2
Quick Ratio (times)	=(Current assets-Stock)/Current Liability	0.51	=(5166.5-3645.2)/2955.2
Average Payment Period (days)	=Accounts Payable/(Total credit purchaseor COGS/days in period)	28.32	=1611.2/(20768.8/365)
ASSET MANAGEMENT RATIOS
Total Asset Turnover (times)	=Net Sales/Total assets	2.90	=28681.1/9878.8
Average Collection Period (days)	=Accounts Receivable/(Net Sales/days in period)	12.15	=954.8/(28681.1/365)
Inventory Turnover (times)	=COGS/Inventory	5.70	=20768.8/3645.2
FINANCIAL LEVERAGE RATIOS
Total Debt to Total Assets	=Total Liabilities/Total assets	0.37	=3648.6/9878.8
Equity Multiplier (times)	=Total assets/Total equity	1.59	=9878.80/6230.200
PROFITABILITY RATIOS
Operating Profit Margin	=Operating profit/Net sales	5.66%	=1624.2/28681.1
Net Profit Margin	=Net profit/Net sales	3.55%	=1019.2/28681.1
Return on Total Assets	=Profitbefore interest and tax /total assets	16.57%	=1637.3/9878.8
Return on Equity	=Net profit/Equity	16.36%	=(1019.2/6230.2)
Earnings per Share	=Net profit/number of shares	987.34	=(1019.2*10^6)/1032271