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a. Calculate the relevant ratios for Company A b. Given the following industry average ratios (same industry where Company A operates), compare the companys ratios
a. Calculate the relevant ratios for Company A
b. Given the following industry average ratios (same industry where Company A operates), compare the companys ratios to the industry average ratios provided below:
2. Given the following financial information for Company A: Income Statement for Year End 2019 Balance Sheet for Year End 2019 Assets Cash and equivalents Net receivables Inventories Total current assets Liabilities 85,8 Accounts payable 72,6 Notes payable 174,9 Other current liabilities 333,3 Total current liabilities Long-term debt Total liabilities 247,5 85,8 Common stock 161,7 Retained earnings Total stockholders' equity 495 Total liabilities and equity 50 50 23 122 26 149 Net sales Cost of goods sold Gross profit Selling expenses EBITDA Depreciation expense Earnings before interest and taxes (EBIT) Interest expense Earnings before taxes (EBT) Taxes (40%) Net income 800 660 140 75 65 12 Gross fixed assets Less depreciation Net fixed assets 125 221 347 495 53 5 48 19,2 28,8 Total assets a. Calculate the relevant ratios for Company A b. Given the following industry average ratios (same industry where Company A operates), compare the company's ratios to the industry average ratios provided below: ROE: 12% Profit margin: 3% Current Ratio: 2x Debt/Total Assets: 25% Times Interest Earned: 6x EBITDA coverage: 8x Fixed Assets turnover: 6x ROA: 8%Step by Step Solution
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