In: Finance
Using the balance sheets and income statements calculate the following ratios for both Carson and BGT found below:
Balance Sheet ($000) | Carson Electronics, Inc. | BGT Electronics, Inc. |
Cash | $1,970 | $1,450 |
Accounts receivable | 4450 | 5990 |
Inventories | 1540 | 2470 |
Current assets | $7,960 | $9,910 |
Net fixed assets | 16000 | 24980 |
Total assets | $23,960 | $34,890 |
Accounts payable | $2,500 | $5,050 |
Accrued expenses | 980 | 1470 |
Short-term notes payable | 3520 | 1520 |
Current liabilities | $7,000 | $8,040 |
Long-term debt | 8030 | 4020 |
Owners' equity | 8930 | 22830 |
Total liabilities and owners' equity | $23,960 | $34,890 |
Income Statement ($000) | Carson Electronics, Inc. | BGT Electronics, Inc. |
Net sales (all credit) | $47,980 | $70,020 |
Cost of goods sold | (35,990) | (42,050) |
Gross profit | $11,990 | $27,970 |
Operating expenses | (7,980) | (11,960) |
Net operating income | $4,010 | $16,010 |
Interest expense | (1,110) | (540) |
Earnings before taxes | $2,900 | $15,470 |
Income taxes (35%) | (1,015) | (5,415) |
Net income | $1,885 | $10,055 |
Carson's times interest earned is ___ times. (Round to two decimal places.)
BGT's times interest earned is ___ times. (Round to two decimal places.)
Carson's inventory turnover is ___ times. (Round to two decimal places.)
BGT's inventory turnover is ___ times. (Round to two decimal places.)
Carson's total asset turnover is ___. (Round to two decimal places.)
BGT's total asset turnover is ___. (Round to two decimal places.)
Carson's operating profit margin is ___%. (Round to two decimal place.)
BGT's operating profit margin is ___%. (Round to two decimal place.)
Carson's operating return on assets is ___%. (Round to two decimal place.)
BGT's operating return on assets is __ %. (Round to two decimal place.)
Carson's debt ratio is ___%. (Round to two decimal place.)
BGT's debt ratio is ___ %. (Round to two decimal place.)
Carson's average collection period is ___days. (Round to one decimal place.)
BGT's average collection period is ___ days. (Round to one decimal place.)
Carson's fixed asset turnover is ___. (Round to two decimal places.)
BGT's fixed asset turnover is ___. (Round to two decimal places.)
Carson's return on equity is ___%. (Round to one decimal place.)
BGT's return on equity is ___%. (Round to two decimal place.)