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Posted on Jul 14, 2024

1. Calculate the 2017-2019 financial ratios for LMC. 2. Conduct a trends analysis for LMC. 3. Compare LMC's 2019 financial ratios with the 2019 industry

1. Calculate the 2017-2019 financial ratios for LMC. 2. Conduct a trends analysis for LMC. 3. Compare LMC's 2019 financial ratios with the 2019 industry averages. 4. Conduct a DuPont analysis 5. Write up your findings. F G H RATIO ANALYSIS Company 2018 2017 2019 Industry 2018 Analysis 2019 2017 2.28 1.69 5.75 56.78 95.22 0.81 1.25 Liquidity Ratios Current Ratio 3 Quick (Acid-Test) Ratio 7 Activity Ratios 8 Inventory Turnover 9 Average Collection Period 10 Average Payment Period 11 Total Asset Turnover 12 Fixed Asset Turnover 13 Debt Ratios 14 Debt Ratio 15 Debt-to-Equity Ratio 16 Times Interest Earned Ratio 17 Financial leverage (Equity) Multiplier 18 Profitability Ratios 19 Gross Profit Margin 20 Operating Profit Margin 21 Net Profit Margin 22 Earnings per Share (EPS) 23 Return on Total Assets (ROA) 24 Return on Equity (ROE) 25 Market Ratios Frames 0.39 0.64 5.67 1.64 36.1% 18.9% 11.7% 7.04 9.5% 15.6% $ me Insert Draw Page Layout Formulas Data Review View Out Calibri (Body) - 11 A- A+ Wrap Text + General $ % ) Insert Delete FO Copy Format Marge & Center Conditional Format Formatting as Table Cell Styles B D F G H E 1.2 0.39 0.64 5.67 1.64 A FIXEU ASSEL Turnover Debt Ratios 1 Debt Ratio 5 Debt-to-Equity Ratio 6 Times Interest Earned Ratio -7 Financial Leverage (Equity) Multiplier 18 Profitability Ratios 19 Gross Profit Margin 20 Operating Profit Margin 21 Net Profit Margin 22 Earnings per Share (EPS) 23 Return on Total Assets (ROA) 24 Return on Equity (ROE) 25 Market Ratios 26 Price/Earnings (P/E) Ratio 27 Market/Book (M/B) Ratio 28 Modified Dupont Analysis 29 Net Profit Margin 30 Total Asset Turnover 31 Financial Leverage (Equity) Multiplier 32 Return on Equity (ROE) 33 34 *Purchases percentage assumed 35 36 27 Fin Statements 36.1% 18.9% 11.7% 7.04 9.5% 15.6% $ 8.82 1.38 11.7% 0.81 1.64 15.6% 70% All Complete Study Problem 3-14 KMP Chapter 4 The following Excel file contains the 2017-19 Income Statement and Balance Sheet for Longview Manufacturing Corporation (LMC). Industry averages for 2019 are provided on a separate tab, along with placeholders to calculate financial revenues. CH 4 Ratio Analysis Problem Set - Fall 2020.xlsx 1. Calculate the 2017-2019 financial ratios for LMC. 2. Conduct a trends analysis for LMC. 3. Compare LMC's 2019 financial ratios wit| the 2019 industry averages. 4. Conduct a DuPont analysis 5. Write up your findings. This assignment should be completed using Excel. Ratio Analysis 100.0% 2018 s 53,074 $2.088 $986 90.4% 2017 s $2.567 $1,711 $856 75.8% 50.39 25.29 31.6% 29.0 Fin Statements LONGVIEW MANUFACTURING CORPORATION 2019 Income Statement (in thousands) s Sales (Revenue) $3,400 Cost of Goods Sold $2.325 Gross Profits $1,075 Operating Expenses Selling expense S104 General and administrative expenses 5196 Other operating expenses 533 Depreciation expense S256 Total Operating Expense $589 Operating Profits (EBIT) $486 Interest Expense 598 Net Profits before Tax (EBT) 5388 Taxes S8I Net Profits after Taxes (Net Income) $307 Preferred Stock Dividends SIO Earnings available for common stockholders 5297 Common Stock Dividends $30 5.7% 58% 1.09 7.5% 17.3% 7.0 16.7% 5.5% 1.0% 6.6% 16.39 8.9 $100 $194 $35 $239 5568 $418 593 $325 $94 5231 SIO 5221 SO SION S187 SUS $223 $550 5103 591 $212 554 S145 SIO $13 2.9% 6.296 1.9% 4.4% 0.39 4.196 0.0 0.34 8.79 0.9% 6.5% 0.0 7.89 95% 18% 2.2% 15.9% 9.8% 8.1% 27.09. 51.39 5430 583 S590 $360 $1.463 52.305 S2.103 $382 $325 S104 54,800 S2.551 $2,249 $3,712 39.4% 62.2 56.79 10.3% & 8, 2.8% 129.39 Balance Sheet Assets Cash Marketable Securities Accounts Receivable Inventories Total Current Assets Land and buildings Machinery and equipment Furniture and fixtures Vehicles Other (includes financial leases) Total Gross Fixed Assets (at cost) Accumulated Depreciation Net Fixed Assets Total Assets Liabilities and Stockholders' Equity Accounts Payable Notes Payable Accruals Total Current Liabilities Long-term Debt (includes financial leases) Total Liabilities Preferred Stock Common Stock Paid-in Capital Retained Earnings Total Stockholders' Equity Total Liabilities and Stockholders' Equity 5363 S68 SSO3 $289 $1.223 $2,072 S1.866 5358 $275 S98 54.9 52.295 $2.374 $3.997 SS. SO 9.6% S255 SSI $365 $300 S1.004 SI.903 $1,693 $316 $314 5965 54322 $2.056 $2.266 $3270 125 61.8 640 2.6% 116.4% 55.4% 61.0 60.6% 100.0% 390 81 140 611 79 159 620 1,023 16% 910 3% 39 1396 269 39% 5% 5% 1196 41% 5% 5% 10% 5270.00 599.00 SI14.00 SER3.00 28% 5967.00 40% $1.450.00 $200.00 5% S191.00 $417.00 31% $1,012.00 53% 1.800.00 97% 53.270.00 1.521 170 191 428 1.401.52 2.190.52 3,711.52 200 191 59% 100 1.135 1.954 3.597 88% Common stock: # of shares outstanding Common stock market price, end of period Book Value per share of Common Stock 34.02 $25.63 $32.10 52337 $28.72 1. Calculate the 2017-2019 financial ratios for LMC. 2. Conduct a trends analysis for LMC. 3. Compare LMC's 2019 financial ratios with the 2019 industry averages. 4. Conduct a DuPont analysis 5. Write up your findings. F G H RATIO ANALYSIS Company 2018 2017 2019 Industry 2018 Analysis 2019 2017 2.28 1.69 5.75 56.78 95.22 0.81 1.25 Liquidity Ratios Current Ratio 3 Quick (Acid-Test) Ratio 7 Activity Ratios 8 Inventory Turnover 9 Average Collection Period 10 Average Payment Period 11 Total Asset Turnover 12 Fixed Asset Turnover 13 Debt Ratios 14 Debt Ratio 15 Debt-to-Equity Ratio 16 Times Interest Earned Ratio 17 Financial leverage (Equity) Multiplier 18 Profitability Ratios 19 Gross Profit Margin 20 Operating Profit Margin 21 Net Profit Margin 22 Earnings per Share (EPS) 23 Return on Total Assets (ROA) 24 Return on Equity (ROE) 25 Market Ratios Frames 0.39 0.64 5.67 1.64 36.1% 18.9% 11.7% 7.04 9.5% 15.6% $ me Insert Draw Page Layout Formulas Data Review View Out Calibri (Body) - 11 A- A+ Wrap Text + General $ % ) Insert Delete FO Copy Format Marge & Center Conditional Format Formatting as Table Cell Styles B D F G H E 1.2 0.39 0.64 5.67 1.64 A FIXEU ASSEL Turnover Debt Ratios 1 Debt Ratio 5 Debt-to-Equity Ratio 6 Times Interest Earned Ratio -7 Financial Leverage (Equity) Multiplier 18 Profitability Ratios 19 Gross Profit Margin 20 Operating Profit Margin 21 Net Profit Margin 22 Earnings per Share (EPS) 23 Return on Total Assets (ROA) 24 Return on Equity (ROE) 25 Market Ratios 26 Price/Earnings (P/E) Ratio 27 Market/Book (M/B) Ratio 28 Modified Dupont Analysis 29 Net Profit Margin 30 Total Asset Turnover 31 Financial Leverage (Equity) Multiplier 32 Return on Equity (ROE) 33 34 *Purchases percentage assumed 35 36 27 Fin Statements 36.1% 18.9% 11.7% 7.04 9.5% 15.6% $ 8.82 1.38 11.7% 0.81 1.64 15.6% 70% All Complete Study Problem 3-14 KMP Chapter 4 The following Excel file contains the 2017-19 Income Statement and Balance Sheet for Longview Manufacturing Corporation (LMC). Industry averages for 2019 are provided on a separate tab, along with placeholders to calculate financial revenues. CH 4 Ratio Analysis Problem Set - Fall 2020.xlsx 1. Calculate the 2017-2019 financial ratios for LMC. 2. Conduct a trends analysis for LMC. 3. Compare LMC's 2019 financial ratios wit| the 2019 industry averages. 4. Conduct a DuPont analysis 5. Write up your findings. This assignment should be completed using Excel. Ratio Analysis 100.0% 2018 s 53,074 $2.088 $986 90.4% 2017 s $2.567 $1,711 $856 75.8% 50.39 25.29 31.6% 29.0 Fin Statements LONGVIEW MANUFACTURING CORPORATION 2019 Income Statement (in thousands) s Sales (Revenue) $3,400 Cost of Goods Sold $2.325 Gross Profits $1,075 Operating Expenses Selling expense S104 General and administrative expenses 5196 Other operating expenses 533 Depreciation expense S256 Total Operating Expense $589 Operating Profits (EBIT) $486 Interest Expense 598 Net Profits before Tax (EBT) 5388 Taxes S8I Net Profits after Taxes (Net Income) $307 Preferred Stock Dividends SIO Earnings available for common stockholders 5297 Common Stock Dividends $30 5.7% 58% 1.09 7.5% 17.3% 7.0 16.7% 5.5% 1.0% 6.6% 16.39 8.9 $100 $194 $35 $239 5568 $418 593 $325 $94 5231 SIO 5221 SO SION S187 SUS $223 $550 5103 591 $212 554 S145 SIO $13 2.9% 6.296 1.9% 4.4% 0.39 4.196 0.0 0.34 8.79 0.9% 6.5% 0.0 7.89 95% 18% 2.2% 15.9% 9.8% 8.1% 27.09. 51.39 5430 583 S590 $360 $1.463 52.305 S2.103 $382 $325 S104 54,800 S2.551 $2,249 $3,712 39.4% 62.2 56.79 10.3% & 8, 2.8% 129.39 Balance Sheet Assets Cash Marketable Securities Accounts Receivable Inventories Total Current Assets Land and buildings Machinery and equipment Furniture and fixtures Vehicles Other (includes financial leases) Total Gross Fixed Assets (at cost) Accumulated Depreciation Net Fixed Assets Total Assets Liabilities and Stockholders' Equity Accounts Payable Notes Payable Accruals Total Current Liabilities Long-term Debt (includes financial leases) Total Liabilities Preferred Stock Common Stock Paid-in Capital Retained Earnings Total Stockholders' Equity Total Liabilities and Stockholders' Equity 5363 S68 SSO3 $289 $1.223 $2,072 S1.866 5358 $275 S98 54.9 52.295 $2.374 $3.997 SS. SO 9.6% S255 SSI $365 $300 S1.004 SI.903 $1,693 $316 $314 5965 54322 $2.056 $2.266 $3270 125 61.8 640 2.6% 116.4% 55.4% 61.0 60.6% 100.0% 390 81 140 611 79 159 620 1,023 16% 910 3% 39 1396 269 39% 5% 5% 1196 41% 5% 5% 10% 5270.00 599.00 SI14.00 SER3.00 28% 5967.00 40% $1.450.00 $200.00 5% S191.00 $417.00 31% $1,012.00 53% 1.800.00 97% 53.270.00 1.521 170 191 428 1.401.52 2.190.52 3,711.52 200 191 59% 100 1.135 1.954 3.597 88% Common stock: # of shares outstanding Common stock market price, end of period Book Value per share of Common Stock 34.02 $25.63 $32.10 52337 $28.72