Given the profit loss (income statement) and balance sheet for Sam's Sandwich Delivery (Table 4-8, page 121 of your textbook), answer the following:Calculate the following ratios: current, quick, accounts receivable turnover, fixed asset turnover.Using the inventory figure on the balance sheet as average inventory, calculate the inventory turnover ratio.Calculate the debt-to-equity ratio, debt-to-total asset ratio, and operating profit margin ratio.Perform a vertical analysis of the income statement.Perform a vertical analysis of the balance sheet.Based on your analysis, would you consider investing in Sam's Sandwich Delivery? Table 4-8 Financial Statements for Sam's Sandwich DeliveryProfit Loss (Income Statement) for Six Months Ending 06-30-2013RevenuesRetail SalesWholesale SalesTotal RevenuesCost of SalesGross ProfitTotal Operating ExpensesOperating ProfitOther Income/ExpensesInterest IncomeInterest ExpenseDepreciation-Store EquipmentTotal Other Income/ExpensesNet ProfitAssetsCurrent AssetsChange FundCash in Bank-CheckingCash in Bank-SavingsAccounts ReceivableInventoriesTotal Current AssetsFixed AssetsFurniture and FixturesLess: Accum DepreciationEquipmentLess: Accum DepreciationTransportation EquipmentLess: Accum DepreciationTotal Fixed AssetsTotal AssetsCurrent LiabilitiesAccounts Payable TradeAccrued Payroll TaxesAccrued Sales TaxesTotal Current LiabilitiesLong-Term LiabilitiesAuto Loans PayableTotal Long-Term LiabilitiesTotal LiabilitiesStockholder's EquityCommon StockRetained EarningsNet Profit/LossTotal Equity$68,283104,41752,067111,11741(651)(292)Balance Sheet as of 06-30-20134,2964,11068,29367,72531,16811,571$172,70083,081(72,376)8,614$120,633$ 9,516$(902)5698,6129,6226,8432,60718656819,5976,2083,46498718,626$8,614$28,253$20,351$48,604$10,659$ 18,626$29,28519,319

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Answered: Given the profit loss (income…

College Accounting, Chapters 1-27

23rd Edition

ISBN:9781337794756

Author:HEINTZ, James A.

Publisher:HEINTZ, James A.

Chapter15: Financial Statements And Year-end Accounting For A Merchandising Business

Section: Chapter Questions

Problem 4SEB: FINANCIAL RATIOS Based on the financial statements, shown on pages 603604, for McDonald Carpeting...

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Given the profit loss (income statement) and balance sheet for Sam's Sandwich Delivery (Table 4-8, page 121 of your textbook), answer the following:
1. Calculate the following ratios: current, quick, accounts receivable turnover, fixed asset turnover.
2. Using the inventory figure on the balance sheet as average inventory, calculate the inventory turnover ratio.
3. Calculate the debt-to-equity ratio, debt-to-total asset ratio, and operating profit margin ratio.
4. Perform a vertical analysis of the income statement.
5. Perform a vertical analysis of the balance sheet.
6. Based on your analysis, would you consider investing in Sam's Sandwich Delivery?

Table 4-8 Financial Statements for Sam's Sandwich Delivery
Profit Loss (Income Statement) for Six Months Ending 06-30-2013
Revenues
Retail Sales
Wholesale Sales
Total Revenues
Cost of Sales
Gross Profit
Total Operating Expenses
Operating Profit
Other Income/Expenses
Interest Income
Interest Expense
Depreciation-Store Equipment
Total Other Income/Expenses
Net Profit
Assets
Current Assets
Change Fund
Cash in Bank-Checking
Cash in Bank-Savings
Accounts Receivable
Inventories
Total Current Assets
Fixed Assets
Furniture and Fixtures
Less: Accum Depreciation
Equipment
Less: Accum Depreciation
Transportation Equipment
Less: Accum Depreciation
Total Fixed Assets
Total Assets
Current Liabilities
Accounts Payable Trade
Accrued Payroll Taxes
Accrued Sales Taxes
Total Current Liabilities
Long-Term Liabilities
Auto Loans Payable
Total Long-Term Liabilities
Total Liabilities
Stockholder's Equity
Common Stock
Retained Earnings
Net Profit/Loss
Total Equity
$68,283
104,417
52,067
111,117
41
(651)
(292)
Balance Sheet as of 06-30-2013
4,296
4,110
68,293
67,725
31,168
11,571
$172,700
83,081
(72,376)
8,614
$120,633
$ 9,516
$
(902)
569
8,612
9,622
6,843
2,607
186
568
19,597
6,208
3,464
987
18,626
$8,614
$28,253
$20,351
$48,604
$10,659
$ 18,626
$29,285
19,319

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