From the following financial statements, compute the required ratios (for year 2002 and 2003) and analyse them with respect to the industry averages. FINANCIAL STATEMENTS INCOME STATEMENT FOR YEAR ENDING DECEMBER 31 2003 2002 2001 Sales 6,500,000.00 5,550,000.00 4,050,000.00 Cost of Goods Sold 3,965,000.00 3,385,500.00 2,430,000.00 Gross Profit 2,535,000.00 2,164,500.00 1,620,000.00 Depreciation 485,600.00 287,200.00 158,500.00 Other Operating expenses 1,690,000.00 1,387,500.00 1,012,500.00 EBIT 359,400.00 489,800.00 449,000.00 Interest 331,956.00 160,125.00 50,645.00 EBT 27,444.00 329,675.00 398,355.00 Income Taxes 10,978.00 131,870.00 159,342.00 Net Income 16,466.00 197,805.00 239,013.00 BALANCE SHEET FOR YEAR ENDING DECEMBER 31 2003 2002 2001 Cash 57,000.00 110,000.00 155,000.00 Accounts Receivable 95,000.00 59,000.00 45,000.00 Inventories 1,050,000.00 723,000.00 540,000.00 Prepaid expenses 42,000.00 36,000.00 25,000.00 Total Current assets 1,244,000.00 928,000.00 765,000.00 Property, Plant and Equipment 7,288,800.00 4,819,200.00 3,245,000.00 less: Accumulated Depreciation 2,432,800.00 1,947,200.00 1,660,000.00 Net Property, Plant and Equipment 4,856,000.00 2,872,000.00 1,585,000.00 Total Assets 6,100,000.00 3,800,000.00 2,350,000.00 Accounts Payable 440,556.00 165,000.00 99,000.00 Line of Credit 570,638.00 353,000.00 267,435.00 Current portion of long term debt 325,346.00 162,000.00 41,461.00 Total Current Liabilities 1,336,540.00 680,000.00 407,896.00 Long term debt 3,253,460.00 1,620,000.00 414,604.00 Equity 1,510,000.00 1,500,000.00 1,527,500.00 Total Liabilities and Equity 6,100,000.00 3,800,000.00 2,350,000.00 Industry Averages Current ratio 1.9 Inventory turnover in days 60 Days Accounts receivables turnover in days 30 Days Fixed Assets Turnover 3.19 Total Assets Turnover 2 Debt ratio 30.00% Net Profit Margin 6.71% Gross Profit Margin 42.00% Return on assets 13.42% Return on Equity 19.17%
From the following financial statements, compute the required ratios (for year 2002 and 2003) and analyse them with respect to the industry averages.
|
Step by step
Solved in 2 steps