Question

An analysis of last year's financial statements produced the following results. 3.6 78.0 days Current ratio Quick ratio Average collection period Inventory turnover Fixed asset turnover Operating profit margin Net profit margin Return on assets Return on equity Debt ratio Times-interest-earned Payout ratio 11.946 6.146 8.996 13.7% 35.5 9.3% 41.4% Use the following data to compute the comparable financial ratios for next fiscal year. Has the film's financial position changed Current assets Cash and short-term investments Accounts receivable Inventory Plant and equipment Long-term investments and other assets Total assets $ 14,657.000 71,873.000 56.372.000 26.881,000 20606,000 5190289.000 Current liabilities Long term delot $ 37,481.000 17.395,000 Equity Total liabilities and equity 135,012.000 5190.299.000 Sales Cast of roads sold Selling, administrative, and other expenses Earnings before interest and taxes interest Taxes Net Income $254,553,000 149.903.000 69.609,000 35,041,000 2.529.000 13.972.540 5 18.560.000 Earnings per share Dividends per share 54.13 $1.80 Average inventory - 556.530.000 T T TT Paragraph Arial 3112pt) - E T- BET

Answer 1

a) Current y al = wott saliova Current satio - Current Assets CCR) a current liabilites Current Assets = cash & short tum investments & Account receivables t inventory Current liabilites TTTTTTTTTTT ($)4 657000 + 71873000 +56372000 37us1,000 ($) = 3.81 7. 6 Quick raito - Cash & short term investment + Account receivables Current liabilites (1116657000 + 74873000 37081000 = 2.3 %. Collection period = Average 365 days Average Kotteen Reccillable tumover heatio Now Avg receivable twinore ratio- Credit sales Average inventory = 254553000 ($) ($) 576530 000 - im

- 2 از حرير را خود Average collation period = 365 days U-so enmin ton = 81 days usui (a Here it is assumed as 365 days per year 000 d) Inventory turnover ratio = Cost a goods sold Average inventory = 149.903000 CS) 56530000 ($) = 2.65 0 Fixed Asset turnover = Net sales Average Net Fixed Assel 25055 3000 ($) 47487000 ($) 5.35 Net tixell Assel 26881000+20606000 = 47487000 (6) On f) Operating petit margin - Operating Profit Xlov. Netsales 1ou6soooo x 100 254553000 = 4.1

Tg Return on Tech Rx Return Debt e Times inter Pay out ral -4.77. Asset = net income ($) Average Total Assets = 18540000 ($) 190369 000 (5) = 9.7 y. equity = Net income Share holders equity 18540000 $ 135013000 (8) b) Return on Den Enel work for (?) Debt ratio = 13.7 a Total liabilites Total Assets ollagesgoo L=1903/89 ooo - 185013000) 37451000+ 17895000 190389 ooo = 55376000 is von 190389000 = 294

4.50 3000 Peruna & Time interest earned = 3600 300 earnings before interest & tax Interest expens 35oulooo ($) 2529000 ($) 13.8 % - 234. (K) Pay outratio I Dividend pershare zob 202 = bagi Earnings for share 1.80 ($) avaront havis 4.13 ($) = 43.5 % Do Soz s Net pont alo 13,200 Alet poon't margin sales - 1854oooo 254553000 = 7c2 Y

of Comparision Particular financial ratio last year Next foy ting DOO Tho 3.8 2-3 Current ratio 3.6 I quick ratio 2.2 Average collectiod period 78 days Inventory turnover ratio 4.4 Fixed Asset ratio 6.4 Operating Profit margin 11.9%. Net profit margin 6.17. Retun on assers 8.8Y. e Return on equity 13.7x | Debt ratio Times interest earned 1 Pay out ratio 81 days. 2.65 5.35 411 aay.72 977 Y. 13.7 hrsus 294 35.5 a. 13-67. 13.5Y.

Therefore the financial ratios are not same for the financial year when compared to last year financial ratios ..