Question

Problem 3-36 Comparing all the ratios [LO3-2]

Using the financial statements for the Snider Corporation, calculate the 13 basic ratios found in the chapter.   
   

SNIDER CORPORATION Balance Sheet December 31, 20X1
Assets
Current assets:
Cash		$	53,000
Marketable securities			26,400
Accounts receivable (net)			235,000
Inventory			257,000
Total current assets		$	571,400
Investments			65,100
Plant and equipment.	$699,000
Less: Accumulated depreciation	222,000
Net plant and equipment			477,000
Total assets		$	1,113,500
Liabilities and Stockholders' Equity
Current liabilities:
Accounts payable		$	94,200
Notes payable			70,600
Accrued taxes			14,000
Total current liabilities		$	178,800
Long-term liabilities:
Bonds payable			158,800
Total liabilities		$	337,600
Stockholders' equity
Preferred stock, $50 par value		$	100,000
Common stock, $1 par value			80,000
Capital paid in excess of par			190,000
Retained earnings			405,900
Total stockholders' equity		$	775,900
Total liabilities and stockholders' equity		$	1,113,500

    

SNIDER CORPORATION Income Statement For the Year Ending December 31, 20X1
Sales (on credit)	$	2,016,000
Cost of goods sold		1,319,000
Gross profit	$	697,000
Selling and administrative expenses		552,000	*
Operating profit (EBIT)	$	145,000
Interest expense		30,300
Earnings before taxes (EBT)	$	114,700
Taxes		89,800
Earnings after taxes (EAT)	$	24,900

*Includes $37,300 in lease payments.

Using the above financial statements for the Snider Corporation, calculate the following ratios.

a. Profitability ratios. (Do not round intermediate calculations. Input your answers as a percent rounded to 2 decimal places.)
  

b. Assets utilization ratios. (Do not round intermediate calculations. Round your answers to 2 decimal places.)
   

c. Liquidity ratios. (Do not round intermediate calculations. Round your answers to 2 decimal places.)
  

  
d. Debt utilization ratios. (Do not round intermediate calculations. Input your debt to total assets answer as a percent rounded to 2 decimal places. Round your other answers to 2 decimal places.)
  

Answer 1