Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

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.

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

International Finance For Non Financial Managers

Authors: Dora Hancock

1st Edition

0749480017, 9780749480011

More Books

Students also viewed these Finance questions

Question

=+3. What level of candor are decision makers willing to receive?

Answered: 1 week ago