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Compute the following ratios for year 2021 and AVG ratios. AAA CORPORATION AAA CORPORATION Balance Sheet Ratios, 2021 Assets Year 2020 Year 2021 2021 AVG
| Compute the following ratios for year 2021 and AVG ratios. | |||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| AAA CORPORATION | AAA CORPORATION | ||||||||||||
| Balance Sheet | Ratios, 2021 | ||||||||||||
| Assets | Year 2020 | Year 2021 | 2021 | AVG 2021 | |||||||||
| Current Assets: | A. Liquidity Ratios | ||||||||||||
| Cash & Cash equivalents | $30,000 | $45,000 | 1. Current Ratio | ||||||||||
| Marketable securities | $35,000 | $40,000 | 2. Quick Ratio | ||||||||||
| Accounts receivable | $230,000 | $300,000 | 3. Cash Ratio | ||||||||||
| Inventory | $285,000 | $298,000 | B. Debt Utilization Ratios | ||||||||||
| Prepaid expenses | $50,000 | $55,000 | 1. Debt to Total Asset | ||||||||||
| Total current assets | $630,000 | $738,000 | 2. Debt Equity Ratio | ||||||||||
| Plant and equipment in Gross | $994,580 | $1,042,500 | 3. Equity Multiplier | ||||||||||
| Less: depreciation | $438,000 | $525,000 | 4. Times Interest Earned | ||||||||||
| Net plant and equipment | $556,580 | $517,500 | 5. Cash Coverage Ratio | ||||||||||
| Total assets | $1,186,580 | $1,255,500 | C. Turnover Ratios | ||||||||||
| 1. Inventory Turnover Ratio | |||||||||||||
| Liabilities and Stockholders' Equity | Year 2000 | Year 2001 | 2. Receivable Turnover Ratio | ||||||||||
| 3. Payable Turnover Ratio | |||||||||||||
| Accounts payable | $225,000 | $150,000 | 4. Fixed Asset Turnover Ratio | ||||||||||
| Notes payable | $250,000 | $300,000 | 5. Total Asset Turnover Ratio | ||||||||||
| Total current liabilities | $475,000 | $450,000 | 6. Days Inventory Outstanding (DIO) | ||||||||||
| Long-term liabilities | $305,000 | $350,240 | 7. Days Sales Outstanding (DSO) | ||||||||||
| Total liabilities | $780,000 | $800,240 | 8. Days Payable Outstanding (DPO) | ||||||||||
| 9. Cash Conversion Cycle (CCC) | |||||||||||||
| Common stock ($10 par value) | $200,000 | $300,000 | D. Profitability & Market Ratios | ||||||||||
| APIC | $50,000 | $70,000 | 1. Profit Margin | ||||||||||
| Retained earnings | $156,580 | $85,260 | 2. Return on Asset(ROA) | ||||||||||
| Total stockholders' equity | $406,580 | $455,260 | 3. Return on Equity(ROE) | ||||||||||
| Total liabilities and equity | $1,186,580 | $1,255,500 | 4. Market-to-Book Ratio | ||||||||||
| 5. Price-earning (PE) Ratio | |||||||||||||
| 6. Price-earning-growth (PEG) Ratio | |||||||||||||
| AAA CORPORATION | |||||||||||||
| Income Statement | |||||||||||||
| Year 2020 | Year 2021 | ||||||||||||
| Sales | $1,650,000 | $1,700,000 | |||||||||||
| Cost of goods sold | $990,000 | $1,020,000 | |||||||||||
| Gross profits | $660,000 | $680,000 | |||||||||||
| Selling & administrative expenses | $180,000 | $190,000 | |||||||||||
| Depreciation expenses | $225,000 | $230,000 | |||||||||||
| EBIT | $255,000 | $260,000 | |||||||||||
| Interest expence | $140,000 | $165,000 | |||||||||||
| Earnings before taxes | $115,000 | $95,000 | |||||||||||
| Taxes | $34,500 | $28,500 | |||||||||||
| Earnings after taxes | $80,500 | $66,500 | |||||||||||
| Preferred stock dividends | $20,000 | $20,000 | |||||||||||
| Net Income | $60,500 | $46,500 | |||||||||||
| Common stock dividends | $30,000 | $40,000 | |||||||||||
| Balance retained in corporation | $30,500 | $6,500 | |||||||||||
| Market price per share | $55 | $50 | |||||||||||
| number of shares outstanding | 20000 | 30000 | |||||||||||
| Earning growth rate | 10% | 15% | |||||||||||
| Book value per share | $20.33 | $15.18 | |||||||||||
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