Company 1 Income statement and Balance sheet
Company 2 Income statement and Balance sheet
Select the Income Statements and Balance Sheets of two corporations from the internet and calculate the following financial ratios: a. Long-term debt ratios b. Total debt ratio c. Times interest earned d. Cash coverage ration e. current ratio f. Quick ratio g. Operating profit margin h. Inventory Turnover i. Days in inventory j. Average collection period k. Return on equity 1. Return on assets m. Payout rations Compare the financial ratios you have calculated above and write a report on the basis of that comparison. Sample Products Co. Income Statement For the Five Months Ended May 31, 2017 Sales Cost of goods sold Gross profit $100,000 75,000 25,000 2,000 5,000 7,000 Operating expenses Selling expenses Advertising expense Commissions expense Administrative expenses Office supplies expense Office equipment expense Total operating expenses 3,500 2,500 6,000 13,000 Operating income 12,000 Non-Operating or other Interest revenues Gain on sale of investments Interest expense Loss from lawsuit Total non-operating 5,000 3,000 (500) (1,500) 6,000 Net Income $ 18,000 Example Company Balance Sheet December 31, 2017 LIABILITIES ASSETS Current assets Cash Petty cash Temporary investments Accounts receivable - net Inventory Supplies Prepaid insurance Total current assets $ 2,100 100 10,000 40,500 31,000 3,800 1,500 89,000 Current liabilities Notes payable Accounts payable Wages payable Interest payable Taxes payable Warranty liability Unearned revenues Total current liabilities $ 5,000 35.900 8,500 2,900 6,100 1,100 1,500 61,000 Investments 36,000 Long-term liabilities Notes payable Bonds payable Total long-term liabilities 20,000 400,000 420,000 Property, plant & equipment Land Land improvements Buildings Equipment Less: accum depreciation Prop, plant & equip - net 5,500 6,500 180,000 201,000 (56,000) 337,000 Total liabilities 481,000 Intangible assets STOCKHOLDERS' EQUITY Goodwill Trade names Total intangible assets 105,000 200,000 305,000 Common stock Retained earnings Accum other comprehensive income Less: Treasury stock Total stockholders' equity Total liabilities & stockholders' equity 110,000 220,000 9,000 (50,000) 289,000 Other assets 3,000 Total assets $ 770,000 $ 770,000 The notes to the sample balance sheet have been omitted. End of Fiscal End of Fiscal 2014 2013 Liabilities and Shareholders' Equity 2014 2013 Assets Current assets Cash and marketable securities Receivables Inventories Other current assets Total current assets 1,723 1,484 11,079 1,016 15,302 1,929 Current liabilities 1,398 Debt due for repayment 11.057 Accounts payable 895 Other current liabilities 15,279 Total current liabilities 328 9,473 1.468 11,269 33 9,379 1,337 10.749 16,869 642 1.844 14,691 514 2,042 Fixed assets Tangible fixed assets Property, plant, and equipment Less accumulated depreciation Net tangible fixed assets Intangible asset (goodwill) Other assets 40,353 17,633 22,720 1,353 571 30,624 27.996 Long-term debt Deferred income taxes 39,064 Other long-term liabilities 15,716 23,348 Total liabilities 1,289 Shareholders' equity 602 Common stock and other paid-in capital Retained earnings 40,518 Treasury stock Total shareholders' equity Total liabilities and shareholders' equity Total assets 39.946 8,521 26,995 (26,194) 9,322 39,946 8,536 23,180 (19,194) 12,522 40,518 $ Millions Net sales Other income Cost of goods sold Selling, general, and administrative expenses Depreciation Earnings before interest and income taxes (EBIT) Interest expense Taxable income Taxes Net income Allocation of net income Dividends Addition to retained earnings $83,176 337 54,222 16,699 1,786 $10,806 830 $ 9,976 3,631 $ 6,345 $ 2,530 $ 3,815 Please read the following description carefully before answering the following questions Healthcare Sales Management System Description: Advance Healthcare is a medicine purchase and sale company which purchases medicine from suppliers and sells it to customers. Advance Healthcare wants to develop an online system which will facilitate to manage the routine tasks of medicine sales and will convert to manual working in a computerized system. The system is meant to manage almost every aspect of the medicine sale system such as maintaining the stock record of the medicine, suppliers/companies accounts, purchase record, customer record, sales invoice generation, employees' record etc. This system will maintain all the sales of medicines to customer and purchase from supplier. The medicine stock will be managed along with their batch number, expiry date, rate and quantity. When the medicine is purchased, and record is entered, the stack record will be updated immediately. The system will also handle the accounts including payments to suppliers and receiving from customer. The proper ledgers of every account will be maintained. The system will also help in maintain the employees' record that includes storing their name and other particulars along with their salary package. The system will generate many sophisticated reports including stock reports. ledger prints and rate lists. The system will not generate any advanced accounting reports as trial balance, balance sheet, Operating Expense Report and worksheets. The system should be user friendly, technology independent and platform independent. The system service should have availability most of the time in the day. It should be able to complete its on-going operations in spite of any error or problem within defined response time. Now considering the above problem description, you are required to list down: [1] Functional requirements (at least 8 functional requirements) 0.25 mark for each correct answers [2] Non-Functional requirements (at least 4 non-functional requirements) 0.25 mark for each correct answers [] User requirements (at least 4 user requirements) 0.5 mark for each correct answers [4] Business requirements (at least 1 business requirement) 1 mark for each correct answers) Select the Income Statements and Balance Sheets of two corporations from the internet and calculate the following financial ratios: a. Long-term debt ratios b. Total debt ratio c. Times interest earned d. Cash coverage ration e. current ratio f. Quick ratio g. Operating profit margin h. Inventory Turnover i. Days in inventory j. Average collection period k. Return on equity 1. Return on assets m. Payout rations Compare the financial ratios you have calculated above and write a report on the basis of that comparison. Sample Products Co. Income Statement For the Five Months Ended May 31, 2017 Sales Cost of goods sold Gross profit $100,000 75,000 25,000 2,000 5,000 7,000 Operating expenses Selling expenses Advertising expense Commissions expense Administrative expenses Office supplies expense Office equipment expense Total operating expenses 3,500 2,500 6,000 13,000 Operating income 12,000 Non-Operating or other Interest revenues Gain on sale of investments Interest expense Loss from lawsuit Total non-operating 5,000 3,000 (500) (1,500) 6,000 Net Income $ 18,000 Example Company Balance Sheet December 31, 2017 LIABILITIES ASSETS Current assets Cash Petty cash Temporary investments Accounts receivable - net Inventory Supplies Prepaid insurance Total current assets $ 2,100 100 10,000 40,500 31,000 3,800 1,500 89,000 Current liabilities Notes payable Accounts payable Wages payable Interest payable Taxes payable Warranty liability Unearned revenues Total current liabilities $ 5,000 35.900 8,500 2,900 6,100 1,100 1,500 61,000 Investments 36,000 Long-term liabilities Notes payable Bonds payable Total long-term liabilities 20,000 400,000 420,000 Property, plant & equipment Land Land improvements Buildings Equipment Less: accum depreciation Prop, plant & equip - net 5,500 6,500 180,000 201,000 (56,000) 337,000 Total liabilities 481,000 Intangible assets STOCKHOLDERS' EQUITY Goodwill Trade names Total intangible assets 105,000 200,000 305,000 Common stock Retained earnings Accum other comprehensive income Less: Treasury stock Total stockholders' equity Total liabilities & stockholders' equity 110,000 220,000 9,000 (50,000) 289,000 Other assets 3,000 Total assets $ 770,000 $ 770,000 The notes to the sample balance sheet have been omitted. End of Fiscal End of Fiscal 2014 2013 Liabilities and Shareholders' Equity 2014 2013 Assets Current assets Cash and marketable securities Receivables Inventories Other current assets Total current assets 1,723 1,484 11,079 1,016 15,302 1,929 Current liabilities 1,398 Debt due for repayment 11.057 Accounts payable 895 Other current liabilities 15,279 Total current liabilities 328 9,473 1.468 11,269 33 9,379 1,337 10.749 16,869 642 1.844 14,691 514 2,042 Fixed assets Tangible fixed assets Property, plant, and equipment Less accumulated depreciation Net tangible fixed assets Intangible asset (goodwill) Other assets 40,353 17,633 22,720 1,353 571 30,624 27.996 Long-term debt Deferred income taxes 39,064 Other long-term liabilities 15,716 23,348 Total liabilities 1,289 Shareholders' equity 602 Common stock and other paid-in capital Retained earnings 40,518 Treasury stock Total shareholders' equity Total liabilities and shareholders' equity Total assets 39.946 8,521 26,995 (26,194) 9,322 39,946 8,536 23,180 (19,194) 12,522 40,518 $ Millions Net sales Other income Cost of goods sold Selling, general, and administrative expenses Depreciation Earnings before interest and income taxes (EBIT) Interest expense Taxable income Taxes Net income Allocation of net income Dividends Addition to retained earnings $83,176 337 54,222 16,699 1,786 $10,806 830 $ 9,976 3,631 $ 6,345 $ 2,530 $ 3,815 Please read the following description carefully before answering the following questions Healthcare Sales Management System Description: Advance Healthcare is a medicine purchase and sale company which purchases medicine from suppliers and sells it to customers. Advance Healthcare wants to develop an online system which will facilitate to manage the routine tasks of medicine sales and will convert to manual working in a computerized system. The system is meant to manage almost every aspect of the medicine sale system such as maintaining the stock record of the medicine, suppliers/companies accounts, purchase record, customer record, sales invoice generation, employees' record etc. This system will maintain all the sales of medicines to customer and purchase from supplier. The medicine stock will be managed along with their batch number, expiry date, rate and quantity. When the medicine is purchased, and record is entered, the stack record will be updated immediately. The system will also handle the accounts including payments to suppliers and receiving from customer. The proper ledgers of every account will be maintained. The system will also help in maintain the employees' record that includes storing their name and other particulars along with their salary package. The system will generate many sophisticated reports including stock reports. ledger prints and rate lists. The system will not generate any advanced accounting reports as trial balance, balance sheet, Operating Expense Report and worksheets. The system should be user friendly, technology independent and platform independent. The system service should have availability most of the time in the day. It should be able to complete its on-going operations in spite of any error or problem within defined response time. Now considering the above problem description, you are required to list down: [1] Functional requirements (at least 8 functional requirements) 0.25 mark for each correct answers [2] Non-Functional requirements (at least 4 non-functional requirements) 0.25 mark for each correct answers [] User requirements (at least 4 user requirements) 0.5 mark for each correct answers [4] Business requirements (at least 1 business requirement) 1 mark for each correct answers)
