Question
Consider the current and pro forma financial statements that follow. 2018 2019 Sales 200 220 Variable Costs 100 110 Fixed Costs 80 80 Net Income
Consider the current and pro forma financial statements that follow.
2018 2019
Sales 200 220
Variable Costs 100 110
Fixed Costs 80 80
Net Income 20 30
Dividends 10 22
Current Assets 120 132
Fixed Assets 200 200
Total Assets 320 332
Current Liabilities 40 44
Long-Term Debt 40 40
Common Stock 40 40
Retained Earnings 200 208
Total Liabilities and Equity 320 332
AFN = 0
Compute the following ratios for 2018 and 2019:
2018 2019
Current Ratio ________ ________
Debt to Assets Ratio ________ ________
Sales to Assets Ratio _______ ________
Net Profit Margin ________ ________
Return on Assets ________ ________
Return on Equity ________ ________
Comment on any trends revealed by your ratio analysis.
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