Cash 1,500.00 Marketable Securities 2,500.00 Accounts Receivable 15,000.00 Inventory 33,000.00 Toatl Current Assets 52,000.00 Fixed Assets (net) 35,000.00 Total Assets 87,000.00 Liabilities & Stockholders Equity Accounts Payable Notes Payable 12,500.00 12,500.00 Total current liabilities 25,000.00 Long Term Debt 22,000.00 Total Liabilities 47,000.00 Commaon Stock 5,000.00 Contributed Capital Retained Eamings 18,000.00 17,000.00 Total Stockholders equity Total Liabilities & Stockholders equity 40,000.00 87,000.00 Sales 130,000.00 Cost of Sales 103,000.00 Gross Margin 27,000.00 Operating Expenses 16,000.00 11,000.00 Earning before interest and taxes Interest Expense 3,000.00 Earnings before taxes Income Tax 8,000.00 3,000.00 Eamings after taxes 5,000.00 Using the statements provided above... Calculate the following liquidity ratios: Current ratio Quick ratio Calculate the following asset management ratios: Average collection period Inventory turnover Fixed asset turnover Total asset turnover Calculate the following financial leverage ratios Debt to equity ratio Long-term debt to equity Calculate the following profitability ratios: Gross profit margin Net profit margin Return on investment Return on stockholders’ equity
Using the statements provided
Calculate the following
Quick ratio
Calculate the following asset management ratios:
Average collection period
Inventory turnover
Fixed asset turnover
Total asset turnover
Calculate the following financial leverage ratios
Debt to equity ratio
Long-term debt to equity
Calculate the following profitability ratios:
Gross profit margin
Net profit margin
Return on assets
Return on
For example: you should present it like the text, or as:Gross margin = 1,933 divided by 8,689 = 22.2%
A competitor of ACME has for the same time period reported the following three ratios:
Current ratio 1.52
Long-term debt to equity .25 or 25%
Net profit margin .08 or 8%
Given these three ratios only which company is performing better on each ratio? Also overall who would you say has the best financial performance and position. Support your answer.
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