Assignment 1: Financial Analysis

Please determine the requested ratios based on the information in the following statements:

Lillian Ruth Artworks, Inc.

Income Statement

Period Ended 12/31/--

Net Sales $1,181,001

Cost of Goods Sold 767,650

Gross Profit 413,351

Operating Expenses 301,746

Net Operating Profit 111,605

Interest Expense 40,177

Earnings Before Tax 71,428

Tax (.21) 15,000

Net Income $ 56,428

Lillian Ruth Artworks, Inc.

Balance Sheet

As of 12/31/--

Cash $131,250 Accounts Payable $381,250

Accounts Receivable 458,750 Accruals 50,000

Inventory 262,500 Notes Payable 206,250

Current Assets $852,500 Current Liabilities $637,500

Gross Fixed Assets $650,000 Bonds $150,000

Accumulated Depreciation 100,000 Debentures 100,000

Net Fixed Assets 550,000 Long-Term Debt $250,000

Total Debt $887,500

Preferred Stock $ 50,000

Common Stock 200,000

Retained Earnings $ 265,000

Total Equity $ 515,000

Total Assets $1,402,500 Total Debt and Equity $1,402,500

Footnotes: 1. Where appropriate use a 360 day year

2. Common shares outstanding: 25,000

3. Preferred shares outstanding: 5,000

4. Preferred Dividends: $5,000

5. Common Dividends: $9,000

6. Common Stock Market Price Per Share: $33.00

7. Earnings Per Share: $2.06 Per Share

1. Lillian Ruths Total Asset Turnover
2. Lillian Ruths Times Interest Earned
3. Lillian Ruths Earning Power
4. Lillian Ruths Dividend Payout
5. Lillian Ruths Debt Ratio
6. Lillian Ruths Book Value/Share
7. Lillian Ruths Net Margin
8. Lillian Ruths Fixed Asset Turnover
9. Lillian Ruths Return on Common Equity
10. Lillian Ruths Accounts Receivables Collection Period