Question

In: Accounting

Below are numbers from a balance sheet and income statement. Construct the financial ratios requested below....

Below are numbers from a balance sheet and income statement. Construct the financial ratios
requested below.

Sales 443555
Operating Costs 326133
Depreciation 10000
Interest Expense 5000
Tax Expense 29408
Cash 1000
Receivables 30000
Inventories 54355
Fixed Assets, Net 50000
Payables 11000
Accrued Expenses 10000
Long-Term Loan 50000
Common Equity 64355

Prepare an income statement and a balance sheet for is company using the information provided.
Calculate:
1. Current ratio
2. Quick ratio
3. NWC-to-total-Assets (Working capital to assets)
4. Ratio of total debt and liabilities to total assets
5. Ratio of total debt and liabilities to shareholder’s equity
6. Interest coverage
7. Net profit margin
8. Sales to total assets (Asset turnover)
9. Return on assets
10. Equity multiplier
11. Return on equity

Solutions

Expert Solution

Current assets
Cash 1000
Accounts receivable 30000
Inventories 54355
Total current assets 85355
Current liabilities
Accounts payable 11000
Accrued expense 10000
Total current liabilities 21000
1 Current ratio = Current assets / current liabilities
Current ratio 4.06 (85355/21000)
2 Current assets 85355
Less Inventories 54355
Quick assets 31000
Quick ratio = Quick assets / current liabilities 1.48 (31000/21000)
3 Current assets 85355
Current liabilities 21000
Working capital 64355
Working capital 64355
Total assets 135355
Working capital to total assets = Net working capital / total assets 0.48 (64355/135355)
4 Total debt 71000
Total assets 135355
Total debt to total assets = Total debt / total assets 0.52 (71000/135355)
5 Total debt 71000
Shareholders equity 64355
Total debt to shareholders equity = Total debts / shareholders equity 1.10 (71000/64355)

ekkarill92 answered 1 year ago
Next > < Previous

Related Solutions

Below are numbers from a balance sheet and income statement. Construct the financial ratios requested below....
Below are numbers from a balance sheet and income statement. Construct the financial ratios requested below. Sales 499891 Operating Costs 359935 Depreciation 10000 Interest Expense 5000 Tax Expense 29408 Cash 1000 Receivables 30000 Inventories 59989 Fixed Assets, Net 50000 Payables 11000 Accrued Expenses 10000 Long-Term Loan 50000 Common Equity 69989 6. Interest coverage 7. Net profit margin 8. Sales to total assets (Asset turnover) 9. Return on assets 10. Equity multiplier 11. Return on equity
Below are numbers from a balance sheet and income statement. Based on these numbers calculate the...
Below are numbers from a balance sheet and income statement. Based on these numbers calculate the financial ratios requested below. All answers must be rounded to TWO decimal places including percentages Sales 421756 Operating Costs 313053 Depreciation Expense 10000 Interest Expense 5000 Tax Expense 29408 Cash 1000 Receivables 30000 Inventories 52175 Fixed Assets, Net 50000 Payables 11000 Accrued Expenses 10000 Long-Term Loan 50000 Common Equity 62175 Based on these values calculate: Current ratio Quick ratio NWC-to-total-Assets (Working capital to assets)...
Based on the following financial information, construct the balance sheet and income statement below for Tonka...
Based on the following financial information, construct the balance sheet and income statement below for Tonka Trucking LLC for the year ending December 31, 2019. Be sure to format them as accurately as possible. Accounts Receivable $40,000 Depreciation Expense $50,000 Accumulated Depreciation $200,000 Cost of Goods Sold $50,000 Income Tax Expense $50,000 Cash $50,000 Sales Revenue $400,000 Equipment (Net of Accumulation) $200,000 Selling, General, and Administrative Expenses $100,000 Common Stock (1,000 shares) $100,000 Accounts Payable $50,000 Retained Earnings $200,000 Interest...
4) Using the balance sheet from #3, construct an income statement and balance sheet for     ...
4) Using the balance sheet from #3, construct an income statement and balance sheet for      the first month of operation, given the following information:     Sales $104,000.00 Collections $77,000.00 Purchases (paid for half) $60,000.00 Ending inventory $57,000.00 Equipment Depreciation $18,000.00 Vehicle Depreciation $2,000.00 Heat (due next month) $450.00 Electricity $325.00 Telephone $230.00 Advertising $1,200.00 Salaries $15,500.00 Payroll Tax Expense $1,700.00 Office Supplies $200.00 Insurance (due next month) $1,250.00 Loan payment $3,500.00     principal $1,500.00     interest $2,000.00 Legal fees...
Identify 2 financial ratios that are useful in analyzing a balance sheet, income statement, or cash...
Identify 2 financial ratios that are useful in analyzing a balance sheet, income statement, or cash flow statement, and provide an example of how these ratios can be used by a firm's managers or other market analysts.
The Income Statement and Balance Sheet columns below are from the work sheet of the Mandle...
The Income Statement and Balance Sheet columns below are from the work sheet of the Mandle Company for the year ended December 31, 20--. Mandle Company Work Sheet (partial) For the year ended December 31, 20-- Income Statement Balance Sheet Account Title Debit Credit Debit Credit Cash 24,000 Accounts Receivable 12,500 Merchandise Inventory 8,000 Store Supplies 550 Office Supplies 1,200 Prepaid Insurance 750 Store Equipment 33,000 Accumulated Depreciation—Store Equipment 19,000 Office Equipment 9,000 Accumulated Depreciation—Office Equipment 5,000 Accounts Payable 9,900...
For each Financial Transaction below, identify the effect on the Balance Sheet, Income Statement and Statement...
For each Financial Transaction below, identify the effect on the Balance Sheet, Income Statement and Statement of Cash Flows. If a transaction does not effect a statement(s), then answer “N/A.” (1/2 point for each of the three statements.) Identify if the transaction on the statement of cash flows is an Operating activity (OA), Investing activity (IA) or a Financing Activity (FA) 1. Calculate the Depreciation on a delivery truck that costs $225,000 with a salvage value of $10,000. Assume the...
Calculating financial​ ratios)  The balance sheet and income statement for the J. P. Robard Mfg. Company...
Calculating financial​ ratios)  The balance sheet and income statement for the J. P. Robard Mfg. Company are as​ follows:   J. P. Robard​ Mfg., Inc. Balance Sheet​ ($000) Cash $490 Accounts receivable 2,090 Inventories 1,090 Current assets $3,670 Net fixed assets 4,600 Total assets $8,270 Accounts payable $1,020 Accrued expenses 630 ​Short-term notes payable 250 Current liabilities $1,900 ​Long-term debt 1,970 ​Owners' equity 4,400 Total liabilities and​ owners' equity $8,270 J. P. Robard​ Mfg., Inc. Income Statement​ ($000) Net sales​ (all...
Use the financial information below to construct a 2010 income statement and balance sheets for both...
Use the financial information below to construct a 2010 income statement and balance sheets for both 2009 and 2010. The firm’s average tax rate is 40% and its plowback ratio is 60%. Find the firms’ cash flows (OCF, NCS, change in NWC, FCF, CFC, CFS). 2009 2010 Sales ($ millions) 1000 1112 Cost of Goods Sold ($ millions) 500 556 Other Expenses ($ millions) 100 111 Depreciation ($ millions) 100 100 Interest Expense ($ millions) 50 55 Total Current Assets...
Compute and Interpret Liquidity, Solvency and Coverage Ratios Information from the balance sheet, income statement, and...
Compute and Interpret Liquidity, Solvency and Coverage Ratios Information from the balance sheet, income statement, and statement of cash flows for Nike follows. Refer to these financial statements to answer the requirements. NIKE, INC. Consolidated Statements of Income Year Ended December 31 (In millions) 2019 2018 Revenues $39,117 $36,397 Cost of sales 21,643 20,441 Gross profit 17,474 15,956 Demand creation expense 3,753 3,577 Operating overhead expense 8,949 7,934 Total selling and administrative expense 12,702 11,511 Interest expense (income), net 49...
ADVERTISEMENT
Subjects
ADVERTISEMENT
Latest Questions
ADVERTISEMENT