Question
2014 2013 2012 2011 2010 2009 Asset Turnover 3351/1249=2.68 Cash Coverage (-9+159)/37=4.05 Cash Ratio 14/680=.02 Quick Ratio 14=176/680=.28 Average Collection Period 194/9.18=21.13 or 21 Current
2014 2013 2012 2011 2010 2009
Asset Turnover 3351/1249=2.68
Cash Coverage (-9+159)/37=4.05
Cash Ratio 14/680=.02
Quick Ratio 14=176/680=.28
Average Collection Period 194/9.18=21.13 or 21
Current Ratio 669/680=.98
Average Days in Inventory 203/5.45=37.25 or 37%
Long Term Debt-Equity Ratio 236/912=.26
Inventory Turnover 1990/203=9.80
Net Working Capital/Total Assets (669-680)/1592=-.01
Operating Profit Margin -24.95/ HELP?
Payout Ratio 0/-49=0
ROA (Return on Assets) -25/1249= -.02 (0.020)
ROE (Return on Equity) -49/725= -.07 (0.070)
Times Interest Earned -9/37= -.24 (0.240)
Total Debt Ratio 680/1592=.43
Paste your Memo in the Space Provided.
Selected Financial Data (all items in Millions of dollars except per share data) 2014 2013 2012 2011 2010 2009
Sales 3,351 3,314 2,845 2,796 2,493 2,160
EBIT -9 312 256 243 212 156
Interest 37 63 65 58 48 46
Taxes 3 60 46 43 39 34
Net Profit (or Net Income) -49 189 145 142 125 76
Earnings Per Share -0.15 0.55 0.44 0.42 0.37 0.25
Current Assets 669 469 491 435 392 423
Net fixed Assets 923 780 753 680 610 536
Total Assets 1,592 1,249 1,244 1,115 1,002 959
Current Liabilities 680 365 348 302 276 320
Long Term Debt 236 159 297 311 319 315
Shareholders' Equity 676 725 599 502 407 324
Stores 240 221 211 184 170 157
Employees 13,057 11,835 9,810 9,790 9,075 7,825
INCOME STATEMENT 2014
Net Sales 3,351
Cost of Goods Sold 1,990
Selling, General, & Administrative Expenses 1,211
Depreciation Expense 159
EBIT (Earnings Before Interest and Taxes) -9
Net Interest Expense 37
Taxable income -46
Income taxes 3
Net Income -49
Allocation of Net Income Addition to Retained Earnings -49
Dividends 0 BALANCE SHEET
Assets 2014 2013
Current Assets Cash & Securities 14 72
Receivables 176 194
Inventories 479 203
Total Current Assets 669 469
Fixed Assets Property, Plant & Equipment (net of depreciation) 1,077 910
Less Accumulated Depreciation 154 130
Net Fixed Assets 923 780
Total Assets 1,592 1,249
Liabilities and Shareholders' Equity Current Liabilities Debt due for repayment 484 222
Accounts Payable 94 58
Other Current Liabilities 102 85
Total Current Liabilities 680 365
Long-term Debt 236 159
Stockholders' Equity Common Stock and other Paid-In Capital 155 155
Retained Earnings 521 570
Total Stockholders Equity 676 725
Total Liabilities and Stockholders Equity 1,592 1,249
Prepare a memo, addressed to the Lending Committee of ABC Bank, where you explain what you uncovered in your analysis. Finish the memo with your group's recommendations on renewal of the $45 million note. Since the committee reviews many such renewal re quests, it is likely that they will not know much about the Hobby Horse Company, so make sure you properly summarize the issues as you understand them?
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