Question
Blossom Appliances Corporation has reported its financial results for the year ended December 31, 2017. Blossom Appliances Corporation Income Statement for the Fiscal Year Ended
Blossom Appliances Corporation has reported its financial results for the year ended December 31, 2017.
Blossom Appliances Corporation Income Statement for the Fiscal Year Ended December 31, 2017 | ||
Net sales | $5,398,412,000 | |
Cost of goods sold | 2,574,693,940 | |
Gross profit | $2,823,718,060 | |
Selling, general, and administrative expenses | 777,233,423 | |
Depreciation | 224,946,116 | |
Operating income | $1,821,538,521 | |
Interest expense | 26,869,500 | |
EBT | $1,794,669,021 | |
Income taxes | 472,153,317 | |
Net earnings | $1,322,515,704 |
Blossom Appliances Corporation Balance Sheet as of December 31, 2017 | ||||||
Assets: | Liabilities Equity: | |||||
Cash and cash equivalents | $437,250,000 | Short-term borrowings | $87,832,398 | |||
Accounts receivable | 889,620,300 | Trade accounts payable | 350,203,488 | |||
Inventory | 834,590,300 | Other current liabilities | 745,717,037 | |||
Other current assets | 266,578,300 | |||||
Total current assets | $2,428,038,900 | Total current liabilities | $1,183,752,923 | |||
Net fixed assets | 641,461,233 | Long-term debt | 900,518,673 | |||
Goodwill | 100,646,553 | Common stock | 298,055,514 | |||
Other assets | 565,299,946 | Retained earnings | 1,353,119,522 | |||
Total assets | $3,735,446,632 | Total liabilities and equity | $3,735,446,632 |
Using the information from the financial statements, complete a comprehensive ratio analysis for Blossom Appliances Corporation.
Calculate these liquidity ratios: current and quick ratios. (Round answers to 2 decimal places , e.g. 12.25.)
Liquidity Ratios | |||
Current Ratio | times | ||
Quick Ratio | times |
Calculate these efficiency ratios: inventory turnover, accounts receivable turnover, DSO. (Round intermediate calculations and final answers to 2 decimal places , e.g. 12.25. Use 365 days for calculation.)
Efficiency Ratios | |||
Inventory turnover ratio | times | ||
Accounts receivable turnover | times | ||
DSO | days |
Calculate these asset turnover ratios: total asset turnover, fixed asset turnover. (Round answers to 2 decimal places , e.g. 12.25%.)
Asset Turnover Ratios | |||
Total asset turnover | times | ||
Fixed assets turnover | times |
Calculate these leverage ratios: total debt ratio, debt-to-equity ratio, equity multiplier. (Round answers to 2 decimal places , e.g. 12.25.)
Leverage Ratios | |||
Total debt ratio | times | ||
Debt-to-equity ratio | times | ||
Equity multiplier | times |
Calculate these coverage ratios: times interest earned, cash coverage. (Round answers to 2 decimal places , e.g. 12.25.)
Coverage Ratios | |||
Times interest earned | times | ||
Cash coverage | times |
Calculate these profitability ratios: gross profit margin, net profit margin, ROA, ROE. (Round answers to 2 decimal places , e.g. 12.25.)
Profitability Ratios | |||
Gross Profit Margin | |||
Net Profit Margin | |||
ROA | |||
ROE |
Use the DuPont identity after calculating the component ratios to compute ROE. (Round answer to 2 decimal places , e.g. 12.25.)
DuPoint identity | |||
ROE |
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