Show ALL work Ratio Analysis. The Williams Corporation’s forecasted 2010 financial statements follow, along with some...

Show ALL work

Ratio Analysis. The Williams Corporation’s forecasted 2010 financial statements follow, along with some industry average ratios.

Forecasted Balance Sheet as of December 31, 2010
Cash	$ 72,000
Accounts receivables	$ 439,000	Accounts and notes payable	$ 432,000
Inventories	$ 894,000	Accruals	$ 170,000
Total current assets	$1,405,000	Total current liabilities	$ 602,000
Land and building	$ 238,000	Long-term debt	$ 404,290
Machinery	$ 132,000	Common stock	$ 575,000
Other fixed assets	$ 61,000	Retained earnings	$ 254,710
Total assets	$1,836,000	Total liabilities and equity	$1,836,000

Forecasted Income Statement for 2010
Sales	$4,290,000
Cost of goods sold	$3,580,000	Per-Share Data
Gross operating profit	$ 710,000	EPS	$ 4.71
General admin & selling expenses	$ 236,320	DPS	$ 0.95
Depreciation	$ 159,000	P/E Ratio	5.00
Misc.	$ 134,000	Market price	$ 23.57
Earnings before Taxes	$ 180,680	Number of shares outstanding	23000
Taxes	$ 72,272
Net Income	$ 108,408


Industry Financial Ratios		William’s Financial Ratios	Ratio/Comment
Quick Ratio	1x	Quick Ratio
Current Ratio	2.7x	Current Ratio
Inventory Turnover	7x	Inventory Turnover
Days Sales Outstanding	40 days	Days Sales Outstanding
Fixed Asset Turnover	13x	Fixed Asset Turnover
Total Asset Turnover	2.6x	Total Asset Turnover
Return on Assets	9.10%	Return on Assets
Return on Equity	18.20%	Return on Equity
Debt Ratio	55%	Debt Ratio
Profit Margin on Sales	3.50%	Profit Margin on Sales
P/E Ratio	6x	P/E Ratio

a. Calculate the indicated ratios for William’s in the appropriate blanks.

b. Outline William’s strengths and weaknesses as compared to its industry. Be detailed in your ratio analysis.

c. Recommend at least three areas for correction. Be sure to support your recommendations.

d. Why is being trustworthy essential to success in the business world? Use at least two of the following scriptures to answer this question: Psalm 101:7, Proverbs 4:20-27, Proverbs 13:11, and Proverbs 28:12-13.

Expert Solution

ekkarill92 answered 10 months ago

Comprehensive Ratio Analysis The Jimenez Corporation's forecasted 2020 financial statements follow, along with some industry average...

Comprehensive Ratio Analysis The Jimenez Corporation's forecasted 2020 financial statements follow, along with some industry average ratios. Jimenez Corporation: Forecasted Balance Sheet as of December 31, 2020 Assets Cash $ 71,000 Accounts receivable 439,000 Inventories 895,000 Total current assets $1,405,000 Fixed assets 431,000 Total assets $1,836,000 Liabilities and Equity Accounts payable $ 332,000 Notes payable 110,000 Accruals 160,000 Total current liabilities $ 602,000 Long-term debt 403,490 Common stock 575,800 Retained earnings 254,710 Total liabilities and equity $1,836,000 Jimenez Corporation: Forecasted Income Statement for...

Comprehensive Ratio Analysis The Jimenez Corporation's forecasted 2019 financial statements follow, along with some industry average...

Comprehensive Ratio Analysis The Jimenez Corporation's forecasted 2019 financial statements follow, along with some industry average ratios. Jimenez Corporation: Forecasted Balance Sheet as of December 31, 2019 Assets Cash $ 68,000 Accounts receivable 439,000 Inventories 898,000 Total current assets $1,405,000 Fixed assets 431,000 Total assets $1,836,000 Liabilities and Equity Accounts payable $ 332,000 Notes payable 118,000 Accruals 152,000 Total current liabilities $ 602,000 Long-term debt 403,750 Common stock 575,540 Retained earnings 254,710 Total liabilities and equity $1,836,000 Jimenez Corporation: Forecasted Income Statement for...

Problem 7-14 Comprehensive Ratio Analysis The Jimenez Corporation's forecasted 2016 financial statements follow, along with some...

Problem 7-14 Comprehensive Ratio Analysis The Jimenez Corporation's forecasted 2016 financial statements follow, along with some industry average ratios. Jimenez Corporation: Forecasted Balance Sheet as of December 31, 2016 Assets Cash $ 78,000 Accounts receivable 462,000 Inventories 875,000 Total current assets $1,415,000 Fixed assets 432,000 Total assets $1,847,000 Liabilities and Equity Accounts payable $ 335,000 Notes payable 95,000 Accruals 176,000 Total current liabilities $ 606,000 Long-term debt 405,590 Common stock 555,000 Retained earnings 280,410 Total liabilities and equity $1,847,000 Jimenez Corporation: Forecasted Income...

The Jimenez Corporation's forecasted 2020 financial statements follow, along with some industry average ratios. Jimenez Corporation:...

The Jimenez Corporation's forecasted 2020 financial statements follow, along with some industry average ratios. Jimenez Corporation: Forecasted Balance Sheet as of December 31, 2020 Assets Cash $ 72,000 Accounts receivable 439,000 Inventories 894,000 Total current assets $1,405,000 Fixed assets 431,000 Total assets $1,836,000 Liabilities and Equity Accounts payable $ 332,000 Notes payable 120,000 Accruals 150,000 Total current liabilities $ 602,000 Long-term debt 403,510 Common stock 575,780 Retained earnings 254,710 Total liabilities and equity $1,836,000 Jimenez Corporation: Forecasted Income Statement for 2020 Sales $4,290,000...

evaluate financial statements using ratio analysis

Question No. 1 (Marks 15) C Company’s forecasted 2020 financial statements are given below, along with...

Question No. 1 (Marks 15) C Company’s forecasted 2020 financial statements are given below, along with industry average ratios. C Company: Forecasted Balance sheet as of December 31, 2020 Cash 72,000 Accounts Receivable 439,000 Inventories 894,000 Total Current Assets 1,405,000 Land and Buildings 238,000 Machinery 132,000 Other Fixed assets 61,000 Total Assets ,1,836,000 Equity & Liabilities Accounts and Notes Payable 432,000 Accrued liabilities 170,000 Total Current liabilities 602,000 Long term Debt 404,290 Common stock 575,000 Retained earnings 254,710...

Question C Company’s forecasted 2020 financial statements are given below, along with industry average ratios.

Question C Company’s forecasted 2020 financial statements are given below, along with industry average ratios. C Company: Forecasted Balance sheet as of December 31, 2020 Cash 72,000 Accounts Receivable 439,000 Inventories 894,000 Total Current Assets 1,405,000 Land and Buildings 238,000 Machinery 132,000 Other Fixed assets 61,000 Total Assets ,1,836,000 Equity & Liabilities Accounts and Notes Payable 432,000 Accrued liabilities 170,000 Total Current liabilities 602,000 Long term Debt 404,290 Common stock 575,000 Retained earnings 254,710 Total Equity & Liabilities...

in 500 words or more, discuss the limitations of financial statements and financial ratio analysis.

What are some potential problems and limitations of financial ratio analysis?

The Corrigan corporation’s 2018 and 2019 financial statements follow: Corrigan Corporation December 31 Balance Sheets (in...

The Corrigan corporation’s 2018 and 2019 financial statements follow: Corrigan Corporation December 31 Balance Sheets (in thousands) 2019 2018 Assets Cash and cash equivalents $72,000 $65,000 Accounts Receivable 549,000 438,000 Inventories 894,000 813,000 Total current assets $1,515,000 $1,316,000 Net fixed assets 500,000 300,000 Total assets $2,015,000 $1,616,000 Liabilities and equity Accounts payable $80,000 $72,708 Notes payable 476,990 457,912 Total current liabilities $556,990 $530,620 Long-term debt 404,290 268,898 Total liabilities $961,280 $799,518 Common stock 799,010 554,880 Retained earnings 254,710 261,602 Total...

Question