Question

Income Statement

	2/3/2018	1/28/2017	1/30/2016	1/31/2015
Revenue
Total Revenue	42,151,000	39,403,000	39,528,000	40,339,000
Cost of Revenue	32,275,000	29,963,000	30,334,000	31,292,000
Gross Profit	9,876,000	9,440,000	9,194,000	9,047,000
Operating Expenses
Selling General and Administrative	7,911,000	7,493,000	7,612,000	7,550,000
Operating Income or Loss	1,965,000	1,947,000	1,582,000	1,497,000
Income from Continuing Operations
Add Total Other Income/Expenses Net	-148,000	-131,000	-272,000	-110,000
Interest Expense	75,000	72,000	80,000	90,000
Income Before Tax	1,742,000	1,744,000	1,230,000	1,297,000
Income Tax Expense	818,000	609,000	503,000	141,000
Add Discontinued Operations	1,000	21,000	90,000	-13,000
Net Income	925,000	1,156,000	817,000	1,143,000

Balance Sheet

	2/3/2018	1/28/2017	1/30/2016	1/31/2015
Current Assets
Cash And Cash Equivalents	1,101,000	2,240,000	1,976,000	2,432,000
Short Term Investments	2,196,000	1,848,000	1,384,000	1,539,000
Net Receivables	1,049,000	1,347,000	1,162,000	1,280,000
Inventory	5,209,000	4,864,000	5,051,000	5,174,000
Other Current Assets	274,000	217,000	313,000	1,047,000
Total Current Assets	9,829,000	10,516,000	9,886,000	11,472,000
Long Term Investments	0	13,000	27,000	3,000
Property Plant and Equipment	2,421,000	2,293,000	2,346,000	2,295,000
Goodwill	425,000	425,000	425,000	425,000
Intangible Assets	18,000	18,000	18,000	57,000
Other Assets	356,000	591,000	817,000	993,000
Deferred Long Term Asset Charges	159,000	317,000	510,000	574,000
Total Assets	13,049,000	13,856,000	13,519,000	15,245,000
Current Liabilities
Accounts Payable	4,873,000	4,984,000	4,450,000	5,030,000
Short/Current Long Term Debt	499,000	0	350,000	0
Other Current Liabilities	1,043,000	944,000	975,000	1,609,000
Total Current Liabilities	7,817,000	7,122,000	6,925,000	7,777,000
Long Term Debt	648,000	1,158,000	1,168,000	1,492,000
Other Liabilities	805,000	704,000	877,000	901,000
Total Liabilities	9,437,000	9,147,000	9,141,000	10,250,000
Stockholders' Equity
Total Stockholder Equity	3,612,000	4,709,000	4,378,000	4,995,000

Calculate the Following

average collection period

total asset turnover

inventory turnover

days in inventory

gross profit margin

operating margin

net profit margin

Answer 1

	2/3/18	1/28/17	1/30/16
Average collection period = 365/(Net Credit Sales / Average Accounts Receivable)	10.37	11.62	11.27	Days
Total asset turnover = Net sales / Average total assets	3.13	2.88	2.75	Times
inventory turnover = COGS/ Average Inventory	6.41	6.04	5.93	Times
Days in inventory = 365 days/ Inventory Turnover	56.96	60.39	61.52	Days
Gross profit margin = Gross Profit/Total Revenue	23.43%	23.96%	23.26%
operating margin = Operating Profit/ Total Revenue	4.66%	4.94%	4.00%
net profit margin = Net Income/ Total Revenue	2.19%	2.93%	2.07%