Question
Consider the following financial information for the C & J Company for the year ended December 2019: Income Statement Balance Sheet Net Sales $5,000 Current
Consider the following financial information for the C & J Company for the year ended December 2019:
Income Statement Balance Sheet
Net Sales $5,000 Current Assets $400
COGS ($4,200)
Gross Profit $800 Property, Plant, and $1,580
SG&A ** ($200) Equipment (net)
EBIT $600 Goodwill $108
Total Assets $2,088
Interest Expense ($60)
Pre-tax Income $540 Current Liabilities $370
Income Tax $200 Long-term Debt $306
Net Income $340 Other Liabilities $20
Total Liabilities $696
Recent Share Price $40.00 Total S/Equity $1,392
Shares Outstanding 200 Total Liabilities and $2,088
Shareholder Equity
**Depreciation Expense $50
Included in SGA
Calculate the Operating Cash Flow for December 2019.
Calculate the Profit Margin for December 2019. Give a one line economic interpretation in dollars.
Calculate the Times Interest Earned Ratio for December 2019.
Calculate the Debt Ratio for December 2019. Give a one line interpretation of your findings.
Calculate the Total Asset Turnover Ratio. Give a one line economic interpretation of your findings.
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