Question
Case 2: Sams Paint and Drywall Sam's Paint and Drywall For the year ended December 31, 2019 (In thousands of dollars) Assets Liabilities and Net
Case 2: Sams Paint and Drywall
Sam's Paint and Drywall For the year ended December 31, 2019 (In thousands of dollars) | |||||
Assets | Liabilities and Net Worth | ||||
Cash | $12 | Accounts Payable | $15 | ||
Inventory | 41 | Notes Payable-Bank | 4 | ||
Accounts Receivable | 18 | Other | 20 | ||
Total Current Assets | 71 |
| Total Current Liabilities | 39 | |
Fixed Assets: | Long Term Liabilities | 41 | |||
Vehicles | 10 |
| |||
Equipment | 15 |
| |||
Building | 22 | ||||
Land | 23 | Total net worth (Owners Equity) | 61 | ||
Total fixed assets | 70 | Total Fixed | 70 | ||
Total assets | $141 | Total Liability and Net worth | $141 | ||
Income Statement for Dec. 31, 2019 (In thousands of dollars) Sales 280 Less Cost of Goods Sold 186 Gross Margin on Sales 94 Less Operating Expenses 81 Net profit (before taxes) 13 |
Questions:
- Determine each of the 5 ratios listed in the table below. Note also that a list of ratios and the equations are included in this document (at the end).
- Evaluate each ratio against Dun and Bradstreets Key Business Ratios on industry norms (given on the following page).
| Ratios to Calculate | Dunn & Bradstreet Avg. |
| 2.7 | |
| 6.9 | |
| 3.5% | |
| 21% | |
| 4.3 : 1 |
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