BUSI 320 Comprehensive Problem 1 Summer 2 Use the following information to answer the questions below: 3 note: all sales are credit sales 2017 Income Stmt info: Sales $1,100,0001,155,000 less Cost of Goods Sold: 775,000 Gross Profit 575,000 609,500 Operating Expenses 194,500 Earnings before interest & Taxes 10 Interest exp 164,500 earnings before Taxes 175,000 13 Taxes Net income S 105,000 S 98,700 15 Balance Sheet info: 12/31/1712/31/18 16 17 Cash 55,000 $ 52,250 Accounts Receivable 110,000 S 111,100 18 80,000 S 88,000 19 inventory S245,000 S Total Current Assets 20 251,350 350,000 S371,000 s9s,0oo s 21 Fixed Assets (Net) Total Assets 622,350 140.000 s 161,000 24 Current Liabilities Long Term Liabilities Total Liabilities 290,000 S 316,000 27 Stockholder's Equity 305,000 S 306,350 28 Total Liab & Equity: 595,000 S622350 30 31Compute each of the following ratios for 2017 and 2018 and 32 indicate whether each ratio was getting "better" or "worse" from 2017 to 2018 33and was "good" or "bad" when compared to the Industry Avg in 2018 tround all numbers to 2 digits past the decimal place) Getting Better or 12/31/18 Balance Sheet infor 5$,000 Sll $2.250 110,000 S 111,100 Accounts Receivable 19 Inventory 88,000 80,000 $ 245,000251,350 20Total Current Assets 21 Fxed Assets (Net) 622,350 595,000 $ 22Total Assets 140000 $ 161,000 150,000 290,000 $316,000 Current Llabilities Long Term Liabilities 26Total Liabilities 290,000 305,000 S 306,350 27Stockholders Equity 28 Total Liab & Equity $$95,000$622,350 Compute each of the following ratios for 2017 and 2018 and indicate whether each ratio was getting "better" or "worse" from 2017 to 2018 and was "good" or "bad" when compared to the Industry Avg in 2018 (round all numbers to 2 digits post the decimal ploce) "Good" or Getting Better or2018compared Getting Industry to Industry "Bad" 2017 2018 Worse?AvgAvg Profit Margin Current Ratio 1.90 Quick Ratio Return on Assets 0.1 Debt to Assets 0.5 Receivables turnover collection period* Inventory Turnover Return on Equity 21.20 8.25 Times interest Earned 46 47 Assume a 360 day year 48 Inventory Turnover can be computed 2 different ways. Use the formula listed in the text and by Connect. 49 (the one the text indicates many credit reporting agencies generally use) 52 53 4HSheet 11 Sheet2 Sheet3+
