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DUPONT ANALYSIS Airtus bom pro Peta Perfoman analysis of the position in the on the terms maleve payments but has in fundamento de The recent industry average ratio and de firm's acts are follows Days sales outstanding 24 days Retum on invested capital al capnal Photos A2.jpg 0 4-24 See all photos + Add to X 14 firm's final . most Current Debt-to-capitalvato Times interested ETIDA CON Insuloy tunes dasturato 3x Fixed is turnover 20Tore 7 Profit margin 9 Return on totalets 104 Retamon common equity fo 3x 3% 99% 12.86% 11.50% Gluksion is based on a daya Interest experie Emines bones (ET) Taxes (409) Net income Streetwinde mere end Dollar Famigliere interest and taxes (BRIT) $29.5 05 $45.0 18.0 Balance Sheets of December 21, 2015 Millions of Bolle Cash and equivalents $ 78 Accounts receivable Inventarios Total current assets 5313 $ 15 $ 11 159 29 Accounts payable Other current liabilities Notes payable Total current liabilities Long-term debt Total liabilities Common stock Retained earnings Total stockholders' equity Total liabilities and equity 2. Calculate the ratiss you think would be useful in this analysis. b. Construct a DuPont equation, and compare the company's ratins to the industry awerage ratios. C Do the balance sheet accounts of the income statement figures seem to be primarily responsible for the low profits? d. Which specific accounts seem to be most out of line relative to other firms in the industry? e. If the firm had a pronounced seasonal sales pattern or if it grew rapidly during the year, how right that affect the validity of your ratio analysis? How might you correct for such potentin problems? Gross fixed assets Less depreciation Net fixed assets Total assets $ 85 50 5135 114 201 $315 $450 225 78 $147 $450 MPREHENSIVE/SPREADSHEET PROBLEM / 4-25 Income Statement for Year Ended December 31, 2015 (Millions of dollars) Net sales $795.0 Cost of goods sold 660.0 Gross profit $135.0 Selling expenses 735 EBITDA $ 615 Depreciation expense 12.0 RATIO ANALYSIS The Corrigan Corporation's 2014 and 2015 financial statements follow, along with some industry average ratios. a. Assess Corrigan's liquidity position, and determine how it compares with peers and how the liquidity position has changed over time. b. Assess Corrigan's asset management position, and determine how it compares with peers and how its asset management efficiency has changed over time. Assess Corrigan's debt management position, and determine how it compares with peers and how its debt management has changed over time. d. Aess Corrigan's profitability ratios, and determine how they Amanah Type here to search o AO 4 ENG 401 AM 10/5/2020 DUPONT ANALYSIS Airtus bom pro Peta Perfoman analysis of the position in the on the terms maleve payments but has in fundamento de The recent industry average ratio and de firm's acts are follows Days sales outstanding 24 days Retum on invested capital al capnal Photos A2.jpg 0 4-24 See all photos + Add to X 14 firm's final . most Current Debt-to-capitalvato Times interested ETIDA CON Insuloy tunes dasturato 3x Fixed is turnover 20Tore 7 Profit margin 9 Return on totalets 104 Retamon common equity fo 3x 3% 99% 12.86% 11.50% Gluksion is based on a daya Interest experie Emines bones (ET) Taxes (409) Net income Streetwinde mere end Dollar Famigliere interest and taxes (BRIT) $29.5 05 $45.0 18.0 Balance Sheets of December 21, 2015 Millions of Bolle Cash and equivalents $ 78 Accounts receivable Inventarios Total current assets 5313 $ 15 $ 11 159 29 Accounts payable Other current liabilities Notes payable Total current liabilities Long-term debt Total liabilities Common stock Retained earnings Total stockholders' equity Total liabilities and equity 2. Calculate the ratiss you think would be useful in this analysis. b. Construct a DuPont equation, and compare the company's ratins to the industry awerage ratios. C Do the balance sheet accounts of the income statement figures seem to be primarily responsible for the low profits? d. Which specific accounts seem to be most out of line relative to other firms in the industry? e. If the firm had a pronounced seasonal sales pattern or if it grew rapidly during the year, how right that affect the validity of your ratio analysis? How might you correct for such potentin problems? Gross fixed assets Less depreciation Net fixed assets Total assets $ 85 50 5135 114 201 $315 $450 225 78 $147 $450 MPREHENSIVE/SPREADSHEET PROBLEM / 4-25 Income Statement for Year Ended December 31, 2015 (Millions of dollars) Net sales $795.0 Cost of goods sold 660.0 Gross profit $135.0 Selling expenses 735 EBITDA $ 615 Depreciation expense 12.0 RATIO ANALYSIS The Corrigan Corporation's 2014 and 2015 financial statements follow, along with some industry average ratios. a. Assess Corrigan's liquidity position, and determine how it compares with peers and how the liquidity position has changed over time. b. Assess Corrigan's asset management position, and determine how it compares with peers and how its asset management efficiency has changed over time. Assess Corrigan's debt management position, and determine how it compares with peers and how its debt management has changed over time. d. Aess Corrigan's profitability ratios, and determine how they Amanah Type here to search o AO 4 ENG 401 AM 10/5/2020