0.09 F36 D A 1 BUSI 320 Comprehensive Problem 1 Version FALL 2 Use the following information to answer the questions below: note: all sales are credit sales 4 2018 2017 Income Stmt info: 900,000 $ 990,000 Sales $ 6 346,125 325,000 less Cost of Goods Sold: 7 Gross Profit 643,875 575,000 450,000 477,000 Operating Expenses Earnings before Interest & Taxes 166,875 125,000 10 Interest exp 11 25,000 31,000 earnings before Taxes 12 100,000 135,875 13 Taxes 40,000 60,000 $ 54,350 Net Income $ 14 81,525 15 Balance Sheet info: 16 12/31/2017 60,000 $ 12/31/2018 17 Cash 63,600 Accounts Receivable 18 80,000 $ 89,600 19 Inventory 110,000 $ 118,800 Total Current Assets 20 250,000 $ 300,000 $ 272,000 Fixed Assets (Net) 21 330,000 Sheet1 Sheet2 Sheet3 Read O e A Paste B IU Format Painter Alig Font Clipboard 0.09 X F36 D A Operating Expenses 450,000 477,000 Earnings before Interest & Taxes 125,000 166,875 10 Interest exp 25,000 31,000 11 earnings before Taxes 100,000 135,875 12 13 40,000 54,350 Taxes 60,000 $ Net Income $ 14 81,525 15 Balance Sheet info: 12/31/2017 60,000 $ 80,000 $ 110,000 $ 12/31/2018 16 17 Cash 63,600 18 Accounts Receivable 89,600 19 Inventory 118,800 20 Total Current Assets 250,000 $ 272,000 Fixed Assets (Net) 21 300,000 $ 550,000 $ 330,000 22 Total Assets 602,000 23 24 Current Liabilities 130,000 $ 156,000 25 Long Term Liabilities 150,000 $ 170,000 26 Total Liabilities 280,000 $ 326,000 Stockholder's Equity 27 270,000 276,000 28 Total Liab & Equity: 550,000 602,000 29 Sheet1 Sheet2 Sheet3 Ready Iili BUSI 320 Comprehensive Problem Tell me what yo Help View Data Review Formulas Page Layout Home Insert le Cut General AA Wrap Text 12 Calibri Copy ste $ % A Merge & Center BIU T Format Painter Alignment Numb Font Clipboard f 46 G B E A Compute each of the following ratios for 2017 and 2018 and indicate whether each ratio was getting "better" or "worse" from 2017 to 2018 and whether the 2018 ratio was "good" or "bad" compared to the Industry Avg (round all numbers to 2 digits past the decimal place) "Good" or "Bad" Getting compared Better or 2018 to Getting Industry Industry 35 2017 2018 Worse? Avg Avg 36 37 Profit Margin 0.09 Current Ratio 1.80 38 Quick Ratio 1.12 Return on Assets 39 0.18 Debt to Assets 40 0.60 Receivables turnover Avg. collection period Inventory Turnover 41 12.00 42 22.10 43 8.25 44 Return on Equity 0.16 Times Interest Earned 45 8.15 AP Ascuume a 36n dase vear 47 Sheet Sheet2 Sheet3 Ready OIe BUSI 320 Comprehensive Problem Tell me what your Help Data Review View Formulas Insert Page Layout File Home Cut General A A DWrap Text 12 Calibri B Copy Paste A $ I U Merge & Center Format Painter Alignment Numbe Font Clipboard 2018 Industry Avg F35 C D E F G "Good" or "Bad" compared 2018 Getting Better or to Industry Industry Getting 35 Worse? 2017 2018 Avg Avg Profit Margin 36 0.09 37 Current Ratio 1.80 Quick Ratio 38 1.12 Return on Assets 39 0.18 Debt to Assets 40 0.60 Recelvables turnover Avg. collection period Inventory Turnover Return on Equity Times Interest Earned 41 12.00 42 22.10 43 8.25 44 0.16 45 8.15 46 Assume a 360 day year 47 Inventory Turnover can be computed 2 different ways. Use the formula listed in the text (the one the text indicates many credit reporting agencies generally use) 48 49 50 51 Sheet1 Sheet2 Sheet3 Ready OIe