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5. Compute the following financial ratios for 2015 and 2016 and  interpreting the results in the image attached: (1 decimal place)                d. age of receivables             e. inventory turnover             f. age of inventory             g. asset turnover             h. fixed asset turnover             i. times interest earned             j. debt ratio             k. equity ratio             l. debt to equity ratio             m. gross profit margin             n. return on equity             o. return on assets

5. Compute the following financial ratios for 2015 and 2016 and  interpreting the results in the image attached: (1 decimal place)                d. age of receivables             e. inventory turnover             f. age of inventory             g. asset turnover             h. fixed asset turnover             i. times interest earned             j. debt ratio             k. equity ratio             l. debt to equity ratio             m. gross profit margin             n. return on equity             o. return on assets

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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5. Compute the following financial ratios for 2015 and 2016 and  interpreting the results in the image attached: (1 decimal place)           
    d. age of receivables        
    e. inventory turnover        
    f. age of inventory        
    g. asset turnover        
    h. fixed asset turnover        
    i. times interest earned        
    j. debt ratio        
    k. equity ratio        
    l. debt to equity ratio        
    m. gross profit margin        
    n. return on equity        
    o. return on assets        

Statement of Financial Position 2015 2016 Cash and Cash Equivalents Short Term Marketable Securities $ Accounts Receivable Inventory Other Current Assets 990,000.00 $ 10,000.00 $ $ 1,020,000.00 $ $ 1,005,000.00 $ $ 950,000.00 15,000.00 1,550,000.00 1,360,000.00 870,000.00 $ 1,150,000.00 5,025,000.00 Total Current Assets $ 3,895,000.00 $ $ 14,006,000.00 $ 17,605,000.00 $ -1,280,000.00 $ -1,700,000.00 $ 12,726,000.00 $ 15,905,000.00 Fixed Assets Accumulated Depreciation Net Fixed Assets Longterm Investments Investments in Other Companies $ Intangibles and Other Assets Total Non Current Assets Total Assets 360,000.00 $ 65,000.00 $ 100,000.00 $ $ 13,251,000.00 $ 16,335,000.00 $ 17,146,000.00 $ 21,360,000.00 $ 320,000.00 110,000.00 Accounts Payable Short Term Borrowings $ 2,050,000.00 $ $ 1,200,000.00 $ $ 3,150,000.00 1,830,000.00 15,000.00 Short Term Portion of LT Debt 12,000.00 $ $ 1,050,000.00 $ $ 4,312,000.00 $ Other Current Liabilities 1,250,000.00 6,245,000.00 Total Current Liabilities Longterm Debt / Borrowings Other Longterm Liabilities $ 1,160,000.00 $ 1,750,000.00 $ 650,000.00 $ $ 1,810,000.00 $ $ 6,122,000.00 $ 750,000.00 Total Non Current Liabilities 2,500,000.00 8,745,000.00 Total Liabilities Preferred Equity Common Equity Additional Paid in Capital Retained Earnings Additional Paid in Capital Treasury Stock Total Shareholder Equity $ 2,044,000.00 $ $ 5,013,000.00 $ $ 5,097,000.00 $ 275,000.00 $ $ -1,405,000.00 $ - 1,460,000.00 $ 11,024,000.00 $ 12,615,000.00 2,005,000.00 4,900,000.00 7,050,000.00 120,000.00 Total Liabilities & Equity $ 17,146,000.00 $ 21,360,000.00 %24
Transcribed Image Text:Statement of Financial Position 2015 2016 Cash and Cash Equivalents Short Term Marketable Securities $ Accounts Receivable Inventory Other Current Assets 990,000.00 $ 10,000.00 $ $ 1,020,000.00 $ $ 1,005,000.00 $ $ 950,000.00 15,000.00 1,550,000.00 1,360,000.00 870,000.00 $ 1,150,000.00 5,025,000.00 Total Current Assets $ 3,895,000.00 $ $ 14,006,000.00 $ 17,605,000.00 $ -1,280,000.00 $ -1,700,000.00 $ 12,726,000.00 $ 15,905,000.00 Fixed Assets Accumulated Depreciation Net Fixed Assets Longterm Investments Investments in Other Companies $ Intangibles and Other Assets Total Non Current Assets Total Assets 360,000.00 $ 65,000.00 $ 100,000.00 $ $ 13,251,000.00 $ 16,335,000.00 $ 17,146,000.00 $ 21,360,000.00 $ 320,000.00 110,000.00 Accounts Payable Short Term Borrowings $ 2,050,000.00 $ $ 1,200,000.00 $ $ 3,150,000.00 1,830,000.00 15,000.00 Short Term Portion of LT Debt 12,000.00 $ $ 1,050,000.00 $ $ 4,312,000.00 $ Other Current Liabilities 1,250,000.00 6,245,000.00 Total Current Liabilities Longterm Debt / Borrowings Other Longterm Liabilities $ 1,160,000.00 $ 1,750,000.00 $ 650,000.00 $ $ 1,810,000.00 $ $ 6,122,000.00 $ 750,000.00 Total Non Current Liabilities 2,500,000.00 8,745,000.00 Total Liabilities Preferred Equity Common Equity Additional Paid in Capital Retained Earnings Additional Paid in Capital Treasury Stock Total Shareholder Equity $ 2,044,000.00 $ $ 5,013,000.00 $ $ 5,097,000.00 $ 275,000.00 $ $ -1,405,000.00 $ - 1,460,000.00 $ 11,024,000.00 $ 12,615,000.00 2,005,000.00 4,900,000.00 7,050,000.00 120,000.00 Total Liabilities & Equity $ 17,146,000.00 $ 21,360,000.00 %24
HARRY & RON CORPORATION Statement of Comprehensive Income 2015 12,060,000 16,700,000 16,000 12,076,000 (4,950,000) (7,050,000) (11,000) (4,961,000) (3,300,000) (3,880,000) 3,815,000 2016 Net Sales Other Operating Revenues 19,000 16,719,000 Total Revenues Cost of Goods Sold (13,000) Other Operating Expenses Total Direct Expenses Selling, General & Administrative Operating Income (7,063,000) 5,776,000 (122,000) Interest Expenses Foreign Exchange (Loss) Gain Associated Company (Loss) Gain Other NonOperating (Loss) Gain Income Tax Expense Reserve Charges (117,000) 17,000 (790,000) (1,005,000) EBITDA 3,815,000 5,776,000 EBITDA (Loss) Gain Tax Expenses Retained Earnings 170,000 302,000 Net Income 3,815,000 5,776,000
Transcribed Image Text:HARRY & RON CORPORATION Statement of Comprehensive Income 2015 12,060,000 16,700,000 16,000 12,076,000 (4,950,000) (7,050,000) (11,000) (4,961,000) (3,300,000) (3,880,000) 3,815,000 2016 Net Sales Other Operating Revenues 19,000 16,719,000 Total Revenues Cost of Goods Sold (13,000) Other Operating Expenses Total Direct Expenses Selling, General & Administrative Operating Income (7,063,000) 5,776,000 (122,000) Interest Expenses Foreign Exchange (Loss) Gain Associated Company (Loss) Gain Other NonOperating (Loss) Gain Income Tax Expense Reserve Charges (117,000) 17,000 (790,000) (1,005,000) EBITDA 3,815,000 5,776,000 EBITDA (Loss) Gain Tax Expenses Retained Earnings 170,000 302,000 Net Income 3,815,000 5,776,000
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