Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Calculate the following profitability leverage management ratios a. Gross profit margin b. Net profit margin c. Return on investment d. Return on Stockholders' equity Calculate
Calculate the following profitability leverage management ratios
a. Gross profit margin
b. Net profit margin
c. Return on investment
d. Return on Stockholders' equity
Calculate the following market-based ratios:
a. Price-to-earnings ratio
b. Market price-to-book value ratio
Ratios Calculation Balance Sheet ($000) Assets Liabilities and Equity Liquidity Current Quick 2.08 0.760 Cash $ Marketable securities $ Accounts receivable $ Inventory $ Total current assets $ Fixed assets (net) $ Total assets $ 1,500 2,500 15,000 33,000 52,000 35,000 87,000 Accounts payable Notes payable Total current liabilities Long-term debt Total liabilities Common stock (par value) Contributed capital in excess of par Retained earnings Total stockholders' equity Total liabilities and stockholders' equity $ $ $ $ $ $ $ $ $ $ 12,500 12,500 25,000 22,000 47,000 5,000 18,000 17,000 40,000 87,000 Asset Management Average collection period Inventory turnover Fixed-asset turnover Total asset turnover Income Statement ($000) Other Info Financial Leverage Debt Debt-to-equity Times interest earned Fixed charge coverage Stock Price Book value/share Number of shares $9.50 $8.00 5,000 in thousands Sales (all on credit) Cost of sales Gross margin Operating expenses* EBIT Interest EBT Income Tax EAT $ $ $ $ $ $ $ $ $ 130,000 103,000 27,000 16,000 11,000 3,000 8,000 3,000 5,000 Profitability Gross profit margin Net profit margin Return on investment Return on stockholders' equity Market-based Price-to earnings Market price-to-book * includes 200 in lease payments
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started