Compute financial ratios. Financial ratios 2014 2015 Current ratio Acid-test ratio Days in receivables Days in inventory Operating return on assets Operating profit margin Total asset turnover Fixed asset turnover Debt ratio Times interest earned Return on equity Return on Assets Return on Assets Compute price/earnings and market/book ratios (Some of these may be in chapter 3) 2014 2015 Earnings per share Dividends per share Price/earnings ratio Book value per share Market/book ratio When you get ready to define and interpret you can do so in the following manner. (EXAMPLE: Alphabet (Google) has a current ratio of 3.96 and an acid-test ratio of 3.93) *****Current ratio measures a firm's degree of liquidity by comparing its current assets to its current liabilities. For Google, the company has $3.96 in war Corporation Income Statement in thousands) CHAPTER 4. Evaluating a Firm's Financial Performan 2014 2015 Sale Card gods solu $ 5,700 13.700 $ 2,000 $ 5400 3.600 $ 1,800 Derating penses sind A expenses Depreciation expense perti penses Genting profits $ 68203 1340) $ 1.150) $ 840 (2001 $ 640 1230) $_410 $ (780) 500) $(1,280) $ 520 2225 $ 245 (65) Eamongs before aes (taxable income) Metonal information: Member of common shares outstanding Dividends paid to stockholders asha Sarket price per share 150 $ 120 $ 36 150 $ 120 $ 18 in 20 had W&T Corporation Balance Sheet WOO 2014 2015 $ 495 915 780 as Cash Accounts receivable mind livestones Der Other current assets Total current assets Ale I Grossfied assets Accumulated depreciation BA Netfand assets $ 300 700 600 125 $1,725 $4,650 1.200) $2.950 $4.675 160 $2,350 $4,950 12,200 $2.750 $5.100 18 Total assets Liabilities (Debt and Equity Accounts payable Short-term notes payable Total current liabilities Long-term debt Total liabilities Common Equity Common stock Retained earnings Total common equity Istal liabilities and equity $ 400 250 $ 650 1.250 $1,900 $ 640 300 $ 940 1325 $2,265 $1.100 1.675 $2,775 $4.675 $1,100 1735 $2.835 $5.100 e Scope and Environment of Financial Management W&T Corp Sales Cost of g Income Statement 1/1/2015-12/31/2015 Sales* Cost of goods sold Gross profit Selling, general, and administrative expenses Depreciation expense Operating profits Interest expense Earnings before taxes Taxes $210,000 190.000 $120,000 (29,000) (26.000 $ 65,000 (8.000 $57,000 (16,000 $ 41.000 Gross pr Operatiu Selling Deprec Totale Net income 12% of sales are cash sales. Opera Intere Earn Inco Net Add Nu Di Mini Case M This Mini Case is available in MyFinanceLab. After graduating from college in December 2014, Elizabeth Arce started her career the W&T Corporation, a small to medium-sized warehouse distributor in Nashvil after they had worked together in management at Wal-Mart Although arse had W Tennessee. The company was founded by David Winston and Colin Tabor in 20
