ContemX EBSCO San Die X movies jobs Gat 13/mi/587039847?cfi=%2F4%2F4 Compare Gum Controls with the average firm in the industry. Wnat is the sourc the major differences between the Gulf and the industry average ratios? Using the following data for Jackson Products Company, answer Parts a through Inventory Jackson Products Company's Balance Sheet December 31, 2013 Cash $ 240,000 Accounts payable $ 380,000 Accounts receivable 320,000 Notes payable (9%) 420,000 1,040,000 Other current liabilities 50,000 Total current assets $1,600,000 Total current liabilities $ 850,000 Net plant and 800,000 Long-term debt (10%) 800,000 equipment Total assets $2,400,000 Stockholders' equity 750,000 Total fiabilities and stockholders' equity $2,400,000 $3,000.090 1,800,000 $1,200,000 860,000 $340,000 Income Statement for the Year Ended December 31, 2013 "Net-sales (all on credit) Cost of sales Gross profit Selling, general, and administrative expenses Eamings before interest and taxes Interest Notes $37,800 Long-term debt 80,000 Total interest charges Eamings before taxes Federal income tax (40%) Eamings after taxes 117,800 $ 222,200 88,880 $ 133 320 Manage X Contem x EBSCO X San Die X movies jobs 45944/mi/5870392607cfi=%2F4%2F4 Industry Averages Current ratio Quick ratio Average collection period (365-day year) Inventory turnover ratio Total asset turnover ratio Times interest egned ratio Net profit margin ratio Return on investment ratio Total assets/stockholders' equity (equity multiplier) ratio Return on stockholders' equity ratio P/E ratio 25:1 1.1:1 35 days 24 times 14 times 3.5 times 4.0% 5.6% 3.0 times 16.8% 9.0 times a. Evaluate the liquidity position of Jackson relative to that of the average firm in the industry. Consider the current ratio, the quick ratio, and the net working capital (current assets minus current liabilities) for Jackson. What problems, if any, are suggested by this analysis? b. Evaluate Jackson's performance by looking at key asset management ratios. Are any problems apparent from this analysis? c. Evaluate the financial risk of Jackson by examining its times interest earned ratio and its equity multiplier ratio relative to the same industry average ratios. d. Evaluate the profitability of Jackson relative to that of the average firm in its industry. e. Give an overall evaluation of the performance of Jackson relative to other firms in its industry, f. Perform a DuPont analysis for Jackson. What areas appear to have the greatest need for improvement? g Jackson's current P/E ratio is 7 times. What factor(s) are most likely to account for this ratio relative to the higher industry average ratio? ContemX EBSCO San Die X movies jobs Gat 13/mi/587039847?cfi=%2F4%2F4 Compare Gum Controls with the average firm in the industry. Wnat is the sourc the major differences between the Gulf and the industry average ratios? Using the following data for Jackson Products Company, answer Parts a through Inventory Jackson Products Company's Balance Sheet December 31, 2013 Cash $ 240,000 Accounts payable $ 380,000 Accounts receivable 320,000 Notes payable (9%) 420,000 1,040,000 Other current liabilities 50,000 Total current assets $1,600,000 Total current liabilities $ 850,000 Net plant and 800,000 Long-term debt (10%) 800,000 equipment Total assets $2,400,000 Stockholders' equity 750,000 Total fiabilities and stockholders' equity $2,400,000 $3,000.090 1,800,000 $1,200,000 860,000 $340,000 Income Statement for the Year Ended December 31, 2013 "Net-sales (all on credit) Cost of sales Gross profit Selling, general, and administrative expenses Eamings before interest and taxes Interest Notes $37,800 Long-term debt 80,000 Total interest charges Eamings before taxes Federal income tax (40%) Eamings after taxes 117,800 $ 222,200 88,880 $ 133 320 Manage X Contem x EBSCO X San Die X movies jobs 45944/mi/5870392607cfi=%2F4%2F4 Industry Averages Current ratio Quick ratio Average collection period (365-day year) Inventory turnover ratio Total asset turnover ratio Times interest egned ratio Net profit margin ratio Return on investment ratio Total assets/stockholders' equity (equity multiplier) ratio Return on stockholders' equity ratio P/E ratio 25:1 1.1:1 35 days 24 times 14 times 3.5 times 4.0% 5.6% 3.0 times 16.8% 9.0 times a. Evaluate the liquidity position of Jackson relative to that of the average firm in the industry. Consider the current ratio, the quick ratio, and the net working capital (current assets minus current liabilities) for Jackson. What problems, if any, are suggested by this analysis? b. Evaluate Jackson's performance by looking at key asset management ratios. Are any problems apparent from this analysis? c. Evaluate the financial risk of Jackson by examining its times interest earned ratio and its equity multiplier ratio relative to the same industry average ratios. d. Evaluate the profitability of Jackson relative to that of the average firm in its industry. e. Give an overall evaluation of the performance of Jackson relative to other firms in its industry, f. Perform a DuPont analysis for Jackson. What areas appear to have the greatest need for improvement? g Jackson's current P/E ratio is 7 times. What factor(s) are most likely to account for this ratio relative to the higher industry average ratio
