5. Using the information in the Balance Sheet and Profit and Loss Statement below, calculate the following ratios and answer the questions (8 points in total) EXHIBIT 9.14 PartsCo: Consolidated Financial Statements $ million Income statement Balance sheet Prior year Revenues 782.6 Current year 900.0 Prior year Current year Working cash 15.0 12.3 Cost of sales (508.7) (612.0) Accounts receivable 85.8 111.0 Selling costs (156.5) (171.0) Inventory 69.7 75.5 Depreciation (27.0) (31.3) Current assets 170.5 198.8 Operating profit 90.4 85.7 Property and equipment 626.1 720.0 Interest (5.0) (7.5) Total assets 796.6 918.8 Earnings before taxes 85.4 78.2 Taxes (31.1) (30.8) Liabilities and equity Net Income 54.3 47.4 Accounts payable 33.7 44.1 Short-term debt 19.4 Current liabilities 33.7 63.5 Long-term debt 170.0 215.0 Shareholders' equity 592.9 640.3 Liabilities and equity 796.6 918.8 1) Calculate the following Liqudity Ratios Current ratio in prior year = Current ratio in current year = Quick ratio in prior year = Quick ratio in current year = 2) Calculate the following Solvency Ratios Debt to Solvency ratios in prior year = Debt to Solvency ratios in current year = Times interest Earned Ratios in prior year = Times interest Earned Ratios in current year = 2) Calculate the following Profitability Ratios Return on Invested Capital (ROIC) ratio in prior year = Return on Invested Capital (ROIC) ratio in current year = Return on Owner's Equity (ROE) ratio in prior year = Return on Owner's Equity (ROE) ratio in current year = Profit as Percentage of Sales ratio in prior year = Profit as Percentage of Sales ratio in current year = 3) Based on the above ratio analysis, what conclusions/observations can you make regarding the financial situation of this company. (If any)? TABLE B-1 PRESENT VALUE OF 1 PV= (n) (1+1)n Periods 2% 21% 3% 4% 5% 6% 7% 8% 1 0.98039 0.97561 0.97087 0.96154 2 3 4 5 0.96117 0.95181 0.94260 0.94232 0.92860 0.91514 0.92385 0.90595 0.88849 0.90573 0.88385 0.86261 9% 0.95238 0.94340 0.93458 0.92593 0.91743 0.90909 0.90090 0.89286 0.86957 0.92456 0.90703 0.89000 0.87344 0.85734 0.84168 0.82645 0.81162 0.79719 0.75614 0.88900 0.86384 0.83962 0.81630 0.79383 0.77218 0.75131 0.73119 0.71178 0.65752 0.85480 0.82270 0.79209 0.76290 0.73503 0.70843 0.68301 0.65873 0.63552 0.57175 0.82193 0.78353 0.74726 0.71299 0.68058 0.64993 0.62092 0.59345 0.56743 0.49718 10% 11% 12% 15% 6 0.88797 0.86230 7 8 9 0.83676 0.80073 0.76642 0.70259 10 S 0.82035 0.78120 0.74409 0.67556 0.64461 0.61391 0.83748 0.79031 0.74622 0.70496 0.66634 0.63017 0.59627 0.56447 0.53464 0.50663 0.43233 0.87056 0.84127 0.81309 0.75992 0.71068 0.66506 0.62275 0.58349 0.54703 0.51316 0.48166 0.45235 0.37594 0.85349 0.82075 0.78941 0.73069 0.67684 0.62741 0.58201 0.54027 0.50187 0.46651 0.43393 0.40388 0.32690 0.59190 0.54393 0.50025 0.46043 0.42410 0.39092 0.36061 0.28426 0.55839 0.50835 0.46319 0.42241 0.38554 0.35218 0.32197 0.24718 12312 0.80426 0.76214 0.72242 0.64958 0.58468 0.52679 0.47509 0.42888 0.38753 0.35049 0.31728 0.28748 0.21494 0.78849 0.74356 0.70138 0.62460 0.55684 0.49697 0.44401 0.39711 0.35553 0.31863 0.28584 0.25668 0.18691 0.77303 0.72542 0.68095 0.60057 0.53032 0.46884 0.41496 0.36770 0.32618 0.28966 0.25751 0.22917 0.16253 14 0.75788 0.70773 0.66112 0.57748 0.50507 0.44230 0.38782 0.34046 0.29925 0.26333 0.23199 0.20462 0.14133 15 0.74301 0.69047 0.64186 0.55526 0.48102 0.41727 0.36245 0.31524 0.27454 0.23939 0.20900 0.18270 0.12289 11822 16 0.72845 0.67362 0.62317 0.53391 0.45811 0.39365 0.33873 0.29189 0.25187 0.21763 0.18829 0.16312 0.10686 17 0.71416 0.65720 0.60502 0.51337 0.43630 0.37136 0.31657 0.27027 0.23107 0.19784 0.16963 0.14564 0.09293 0.70016 0.64117 0.58739 0.49363 0.41552 0.35034 0.29586 0.25025 0.21199 0.17986 0.15282 0.13004 0.08081 19 0.68643 0.62553 0.57029 0.47464 0.39573 0.33051 0.27651 0.23171 0.19449 0.16351 0.13768 0.11611 0.07027 20 0.67297 0.61027 0.55368 0.45639 0.37689 0.31180 0.25842 0.21455 0.17843 0.14864 0.12403 0.10367 0.06110