Homework Answers
Sol 1. The workings for all the ratios and their Comparison with the Peer Group is as under the only on account of Liquidity i.e. Acid Test Ratio the company has performed poorly vis a vis poor. In all the other ratios company's performance is better than its peer group.
| Workings for Ratios for Year 2016 | ||
| 1 | Acid Test Ratio = | (TCA-Inventory)/TCL |
| Blunt Industry 2016 TCA | 80600 | |
| Blunt Industry 2016 Inventory | 59150 | |
| Blunt Industry 2016 TCL | 89700 | |
| Blunt Industry Acid Test Ratio 2016 | 0.24 | |
| 2 | Average Collection Period = | Average Accounts Recievables/Sales per Day |
| Blunt Industry 2016 Avg Account Receivables | 18212.5 | |
| Blunt Industry 2016 Sales per Day | 1095.89 | |
| Blunt Industry Average Collection Period | 17 | |
| 3 | Inventory Turnover = | COGS/Average Inventory |
| Blunt Industry 2016 COGS | 240000 | |
| Blunt Industry 2016 Avg Inventory | 47700 | |
| Blunt Industry Inventory Turnover | 5.0 | |
| 4 | Debt Ratio = | Total Debt/Total Assets |
| Blunt Industry 2016 Total Debt | 29835 | |
| Blunt Industry 2016 Total Assets | 195000 | |
| Blunt Industry 2016 Debt Ratio | 15% | |
| 5 | Total Assets Turnover = | Total Sales/Avg Total Assets |
| Blunt Industry 2016 Total Sales | 400000 | |
| Blunt Industry 2016 Avg Total Assets | 167812.5 | |
| Blunt Industry 2016 Total Assets Turnover | 2.38 | |
| 6 | Return on Equity = | Net Income/Shareholders Equity |
| Blunt Industry 2016 Net Income | 16703 | |
| Blunt Industry 2016 Shareholders Equity | 75465 | |
| Blunt Industry 2016 Return on Equity | 22.13% | |
| 7 | Gross Profit Margin = | Gross Profit/Sales |
| Blunt Industry 2016 Total Sales | 400000 | |
| Blunt Industry 2016 Gross Profit | 160000 | |
| Blunt Industry 2016 Gross Profit Margin | 40% |
| Ratios for Year 2016 | |||
| Ratio | Peer Group | Company | Financial Condition |
| Acid-Test Ratio | 0.8 | 0.24 | Poor vis a vis Peer Group |
| Average Collection Period | 37 days | 17 days | Better vis a vis Peer Group |
| Inventory Turnover | 2.5 | 5.0 | Better vis a vis Peer Group |
| Debt Ratio | 58% | 15% | Less Leverage vis a vis Peer Group |
| Total Assets Turnover | 1.14 | 2.38 | Better vis a vis Peer Group |
| Return on Equity | 9.50% | 22.13% | Better vis a vis Peer Group |
| Gross Profit Margin | 37% | 40% | Better vis a vis Peer Group |
Sol 2. The workings for EPS; P-E and Market to Book Ratio is as under:-
| Blunt Industries end of 2016 position | |
| Shares of Common Stock O/s | 5000 |
| Market Price per Share | 15 |
| Earnings per Share = | Net Income/Shares of Common Stock O/s |
| Net Income for 2016 | 16703 |
| Shares of Common Stock O/s | 5000 |
| Earnings per Share = | 3.34 |
| Price-Earnings Ratio = | Market Price per share/Earning per Share |
| Price-Earnings Ratio = | 4.49 |
| Market to Book Ratio = | Market Price per Share/Book Value per Share |
| Market Price per Share | 15 |
| Book Price per Share = | Common Stock Value/Shares of Common Stock O/s |
| Book Price per Share = | 8.19 |
| Market to Book Ratio = | 1.83 |
Add Answer to:
The last two years of financial statements for Blunt industries are as follows 11250 Blunt Inustries...
Summary information from the financial statements of two companies competing in the same industry follows. Barco...
Summary information from the financial statements of two companies competing in the same industry follows. Barco Kyan Company Company Data from the current year and balance sheets Assets Cash $ 21,000 $31.000 Accounts receivable, et 37.400 54,400 Current notes receivable (trade) 9,800 3.200 Merchandise inventory 84,840 134,500 Prepaid expenses 6,200 2,850 Plant annets, net 290,000 306,400 Total assets $449,240 $542,350 Barco Kyan Company Coepany Data from the current year's income statement Sales $800,000 $920,200 cost of goods sold 587,100 634.500...
The financial statements for Delta Industries for the year ended December 31st, 2018 are as follows:...
The financial statements for Delta Industries for the year ended December 31st, 2018 are as follows: Delta Industries Statement of Income For the years ended December 31, 2018 and 2017 2018 2017 Sales revenue $351,500 $310,000 Cost of goods sold 201,000 155,000 Gross margin 150,500 155,000 Operating expenses: 65,000 71,000 Operating income 85,500 84,000 Interest expense 26,000 20,000 Income before income tax 59,500 64,000 Income tax expense 19,000 22,500 Operating income $40,500 $41,500 Delta Industries Statement of Financial Position December...
Summary information from the financial statements of two companies competing in the same industry follows. Problem...
Summary information from the financial statements of two companies competing in the same industry follows. Problem 13-5A Comparative ratio analysis A1P3 T Barco Company Kyan Company Barco Сотрату Kyan Сотрату Sales Data from the current year-end balance sheets Assets Cash ... $19,500 Accounts receivable, net 37.400 Current notes receivable (trade).... 9.100 Merchandise inventory.......... 84.440 Prepaid expenses 5.000 Plant assets, net... 290,000 Total assets.. $445,440 $ 34,000 57.400 7.200 132.500 6.950 304,400 $542.450 Data from the current year's income statement $770,000...
can someone help me for the question S . the last qustion thank you Financial statements...
can someone help me for the question S . the last
qustion
thank you
Financial statements for Fanning Company follow FANNING COMPANY Balance Sheets As of December 31 2019 2018 25.000 241,000 208.000 280,000 31,000 $584 000 26.000 $524 000 $ Current assets Cash Marketable securities Accounts receivable net) Inventories Prepaid items Total current assets Investments Plant (net) Land Total assets Liabilities and Stockholders' Equity Liabilities Current liable Notes payable Accounts payable Salaries payable Total current a s Noncurrenties Bonds...
Summary information from the financial statements of two companies competing in the same industry follows. Barco...
Summary information from the financial statements of two companies competing in the same industry follows. Barco Kyan Company Company Data from the current year-end balance sheets Assets Cash $ 22.500 $35,000 Accounts receivable, net 35,400 57.400 Merchandise inventory 84,840 128.500 Prepaid expenses 5,800 7.200 Plant assets, net 320,000 309,400 Total assets $468,540 $537,500 Bareo Kyan Company Company Data from the current years income statement Sales $770,000 $879,200 Coat of goods sold 587,100 2,500 Interest expense 8.400 10.000 Income tax expense...
Summary information from the financial statements of two companies competing in the same industry follows. Cash...
Summary information from the financial statements of two companies competing in the same industry follows. Cash Barco Kyan Barco Kyan Company Company Company Company Data from the current year end balance sheets Data from the current year's income statesent $770,000 $880, 200 $ 19,500 $ 34,000 Cost of goods sold 585,100 532.500 Accounts receivable. net 37.400 57.400 Interest expense 7,900 13.000 Current notes receivable (trade) 9, 100 7,200 Income tax expense 14,800 24.300 Merchandise inventory 34,449 132.500 Net Income 162,200...
Summary information from the financial statements of two companies competing in the same industry follows. Barco...
Summary information from the financial statements of two companies competing in the same industry follows. Barco Kyan Company Company Data from the current year-end balance sheets Assets $ 19,500 $ 34,000 Accounts receivable, net 37.400 57,400 Current notes receivable (trade) 9. 1097 .209 Merchandise Inventory 84,449 132.500 Prepaid expenses 5.900 0.959 plant assets.net 299,000 304,400 Total assets 5465, 4405542,450 Barco kyan. Company Company Data from the current year's income statement Sales $770,000 $880, 200 Cost of goods sold 585, 109...
Part One Instructions The financial information for the past two years (2018 and 2019) is provided....
Part One Instructions The financial information for the past two years (2018 and 2019) is provided. Using a spreadsheet application, such as Microsoft Excel, and the information from the previous years, provide the following: 1. Prepare a statement of Cash Flows for the current year using the indirect method. 2. Using horizontal analysis, prepare a Comparative Balance Sheet. 3. Using vertical analysis, prepare an Income Statement. 4. Using the textbook, calculate the ratios set out below: a. Working Capital both...
Perform a financial analysis for Under Armor using the financial statements below. Using 3 years of...
Perform a financial analysis for Under Armor using the financial
statements below. Using 3 years of data, compare the data to the
industry average in order to determine how the company is doing.
Please include the following ratios: Gross profit margin, ROI, ROE,
EPS, Inventory turnover, days of inventory, debt to asset ratio,
debt to equity ratio, times interest earned
THANK YOU!!!
December 31, 2009 December 31, 2006 December 31, 2007 $187.297 79356 148.888 19,989 12,870 448.000 72,926 5.681 13,908...
CASE 1-5 Financial Statement Ratio Computation Refer to Campbell Soup Company's financial Campbell Soup statements in...
CASE 1-5 Financial Statement Ratio Computation Refer to Campbell Soup Company's financial Campbell Soup statements in Appendix A. Required: Compute the following ratios for Year 11. Liquidity ratios: Asset utilization ratios:* a. Current ratio n. Cash turnover b. Acid-test ratio 0. Accounts receivable turnover c. Days to sell inventory p. Inventory turnover d. Collection period 4. Working capital turnover Capital structure and solvency ratios: 1. Fixed assets turnover e. Total debt to total equity s. Total assets turnover f. Long-term...
Summary information from the financial statements of two companies competing in the same industry follows. Barco Kyan Company Company Data from the current year and balance sheets Assets Cash $ 21,000 $31.000 Accounts receivable, et 37.400 54,400 Current notes receivable (trade) 9,800 3.200 Merchandise inventory 84,840 134,500 Prepaid expenses 6,200 2,850 Plant annets, net 290,000 306,400 Total assets $449,240 $542,350 Barco Kyan Company Coepany Data from the current year's income statement Sales $800,000 $920,200 cost of goods sold 587,100 634.500...
Summary information from the financial statements of two companies competing in the same industry follows. Problem 13-5A Comparative ratio analysis A1P3 T Barco Company Kyan Company Barco Сотрату Kyan Сотрату Sales Data from the current year-end balance sheets Assets Cash ... $19,500 Accounts receivable, net 37.400 Current notes receivable (trade).... 9.100 Merchandise inventory.......... 84.440 Prepaid expenses 5.000 Plant assets, net... 290,000 Total assets.. $445,440 $ 34,000 57.400 7.200 132.500 6.950 304,400 $542.450 Data from the current year's income statement $770,000...
can someone help me for the question S . the last
qustion
thank you
Financial statements for Fanning Company follow FANNING COMPANY Balance Sheets As of December 31 2019 2018 25.000 241,000 208.000 280,000 31,000 $584 000 26.000 $524 000 $ Current assets Cash Marketable securities Accounts receivable net) Inventories Prepaid items Total current assets Investments Plant (net) Land Total assets Liabilities and Stockholders' Equity Liabilities Current liable Notes payable Accounts payable Salaries payable Total current a s Noncurrenties Bonds...
Summary information from the financial statements of two companies competing in the same industry follows. Barco Kyan Company Company Data from the current year-end balance sheets Assets Cash $ 22.500 $35,000 Accounts receivable, net 35,400 57.400 Merchandise inventory 84,840 128.500 Prepaid expenses 5,800 7.200 Plant assets, net 320,000 309,400 Total assets $468,540 $537,500 Bareo Kyan Company Company Data from the current years income statement Sales $770,000 $879,200 Coat of goods sold 587,100 2,500 Interest expense 8.400 10.000 Income tax expense...
Summary information from the financial statements of two companies competing in the same industry follows. Cash Barco Kyan Barco Kyan Company Company Company Company Data from the current year end balance sheets Data from the current year's income statesent $770,000 $880, 200 $ 19,500 $ 34,000 Cost of goods sold 585,100 532.500 Accounts receivable. net 37.400 57.400 Interest expense 7,900 13.000 Current notes receivable (trade) 9, 100 7,200 Income tax expense 14,800 24.300 Merchandise inventory 34,449 132.500 Net Income 162,200...
Summary information from the financial statements of two companies competing in the same industry follows. Barco Kyan Company Company Data from the current year-end balance sheets Assets $ 19,500 $ 34,000 Accounts receivable, net 37.400 57,400 Current notes receivable (trade) 9. 1097 .209 Merchandise Inventory 84,449 132.500 Prepaid expenses 5.900 0.959 plant assets.net 299,000 304,400 Total assets 5465, 4405542,450 Barco kyan. Company Company Data from the current year's income statement Sales $770,000 $880, 200 Cost of goods sold 585, 109...
Part One Instructions The financial information for the past two years (2018 and 2019) is provided. Using a spreadsheet application, such as Microsoft Excel, and the information from the previous years, provide the following: 1. Prepare a statement of Cash Flows for the current year using the indirect method. 2. Using horizontal analysis, prepare a Comparative Balance Sheet. 3. Using vertical analysis, prepare an Income Statement. 4. Using the textbook, calculate the ratios set out below: a. Working Capital both...
Perform a financial analysis for Under Armor using the financial
statements below. Using 3 years of data, compare the data to the
industry average in order to determine how the company is doing.
Please include the following ratios: Gross profit margin, ROI, ROE,
EPS, Inventory turnover, days of inventory, debt to asset ratio,
debt to equity ratio, times interest earned
THANK YOU!!!
December 31, 2009 December 31, 2006 December 31, 2007 $187.297 79356 148.888 19,989 12,870 448.000 72,926 5.681 13,908...
CASE 1-5 Financial Statement Ratio Computation Refer to Campbell Soup Company's financial Campbell Soup statements in Appendix A. Required: Compute the following ratios for Year 11. Liquidity ratios: Asset utilization ratios:* a. Current ratio n. Cash turnover b. Acid-test ratio 0. Accounts receivable turnover c. Days to sell inventory p. Inventory turnover d. Collection period 4. Working capital turnover Capital structure and solvency ratios: 1. Fixed assets turnover e. Total debt to total equity s. Total assets turnover f. Long-term...
Most questions answered within 3 hours.
-
Where is the error in this code sequence?
String s1 = "Hello";
String s2 = "ello";...
asked 11 months ago -
Financial data for Joel de Paris, Inc., for last year
follow:
Joel de Paris, Inc.
Balance...
asked 11 months ago -
Consider this reaction:
Al2(SO4)3 (aq)+ BaCl3
(aq) Al2Cl6 (aq)- +
3BaSO4(s) . What is the...
asked 11 months ago -
Suppose that Savneet is considering increasing her
recent random sample from 20 car rentals to 40...
asked 11 months ago -
Trucks arrive at an unloading terminal at an average rate of 120
per hour.
Trucks arrive...
asked 11 months ago -
Why are methanol and ethanol completely soluble in water while
octanol is not very little soluble....
asked 11 months ago -
A facilities manager at a university reads in a research report
that the mean amount of...
asked 11 months ago -
When the CuSO4 is rehydrated by adding water to the anhydrous
compound, is this an endothermic...
asked 11 months ago -
A ray of sunlight is passing from diamond into crown glass; the
angle of incidence is...
asked 11 months ago -
A block of mass 0.249 kg is placed on top of a light, vertical
spring of...
asked 11 months ago -
how do the kidneys compensate in the presences of acidosis
a) trigger hyperventilate
b) reserve acid...
asked 11 months ago -
Question 501 pts
The rental rate of capital to the firm increases. Which of the
following...
asked 11 months ago