Question

Which company has the least efficient SG&A/Sales ratio?

Select: 1

Digby Andrews Chester Baldwin

Round: 4 December 31, 2022 Financial Summary katharine maisak NOUTRER Cash Flow Statement Survey Cash flows from operating activities Andrews Adjustment for non-cash items: S15,487 Changes in current assets and liabilities: $109,608 Net cash from operations Cash flows from investing activities Plant improvements (net) Cash flows from financing activities Cash from long term debt issued Early retirement of long term debt Retirement of current debt Cash from current debt borrowing $75,415 ($15,558) ($10,120) (S18,418) ($137,791) Net cash from financing activities Net change in cash position $47,232 S19,395 Balance Sheet Survey Chester Accounts Receivable Inventory Total Current Assets Total Fixed Assets Accounts Payable Current Debt Long Term Debt Common Stock Retained Earnings Total Liabilities & Owners' Equity Income Statement Survey Sales Variable Costs (Labor, Material, Carry) Depreciation SGA (R&D, Promo, Sales, Admin) Other (Fees, Writeoffs, TQM, Bonuses) EBIT Interest (Short term, Long term) Taxes Profit Sharing Net Profit Digby $148,335 S85,065 S15,487 S15,185 $4,702 S27,897 S13,157 $5,159 S192 $9,389 Andrews $213,078 $131,182 $17,805 $19,517 $13,771 $30,803 $18,854 $4,182 $155 $7,612 Baldwin $179,700 $107,621 $17,396 $21,372 $5,160 $28,150 $15,250 $4,515 $168 $8,217 Chester $237,748 S136,772 $9,711 $14,052 S6,084 $71,129 S6,337 $22,677 $842 $41,273 COMP-XMD INQUIRER

Answer 1

	Andrew	Baldwin	Chester	Digby
Sales	213078	179700	237748	148335
SG&A	19517	21372	14052	15185
Ratio = SG&A / Sales	0.092	0.119	0.059	0.102

Higher the ratio, lesser efficient is the ratio i.e. we are spending more on SG&A compared to sales. Hence, answer is Baldwin with highest SG&A / Sales ratio.