Chapter 2: Analysis of Financial Statements: Practice questions Al Hamra wholesale trade Company Balance sheet Art Accr. 22.00 STA Carver 2,000./12.193.12 Gases Pared A 19.10.200.00 Less Dent 30.12 1.100 Nowdate 170 Tualet M97.159.16.97 Laharis Equity Accopy.004.10 Notes pile 300.000 OR .. Car Lien 144.000.08 Lang 0.0 23:43 Clock 1.321.176.000 Heading 31% 1.90 195.269.59 Total Lities ERITA Income statement 19 Site STAM Cet of Good Sold 5.575.90 0.00 Ohrenpres 350.000319988 09.106 113.968) Den 16. Anas 12.01 20.011012 ringe TEND Kerger W IT Intense Formulae Current ratio Current assets / Current Liabilities Inv. turnover Sales / Inventories FA turnover Sales / Net fixed assets TA turnover Sales / Total assets Debt ratio = Total debt / Total assets TIE EBIT / Interest expense Profit margin -Net income / Sales Operating profit margin-EBIT / Sales ROA = Net income Total assets ROE Net income Total common equity -Price! Earnings per share ME - Mki price per share Book value per share DuPont Analysis ROE formula: ROE-(Profit margin) x (TA tumover) (Equity multiplier) ROE (NI/Sales) x (Sales TA) (TA Equity) Other data 2020 2019 Ne ofr250.000 100 ETS 52.00 52.00 DPS 5110 51.30 Question 1 1. Determine the liquidity ratio of Al Hamra Company in 2019 & 2020. What is the liquidity position of the company compared to the industry? 3098 Ant 2000 Current 2348 2. How efficiently is Al Hamra managing its assets? Calculate the Inventory turnover, fixed asset turnover and Asset turnover ratios for 2019 & 2020. 2009 Investos tres Fixed Amet turnover & 641 3. Calculate the debt management ratios using Debt to asset ratio, and Times interest eamed (TIE). What is the leverage position of the company compared to the industry? 30 54 NA TIE 707 4. How profitable is Al Hamra Company Compute the profit margin, Return on Asset (ROA) and Return on Equity (ROE) ratios. How profitable the company is compared to the industry? 3090 2019 Id IM ROA 60 ROE 5. Calculate the market value ratios of the company for 2019 & 2020. 2019 2008 29 MS 28