Question
Dana Dairy Products Key Ratios _________________________________________________________________ Dana Industry Average 2008 2009 _________________________________________________________________ Current Ratio 1.3 1.0 Quick Ratio 0.8 0.75 Average collection Period 23 days
Dana Dairy Products Key Ratios
_________________________________________________________________
Dana Industry Average
2008 2009
_________________________________________________________________
Current Ratio 1.3 1.0
Quick Ratio 0.8 0.75
Average collection Period 23 days 30 days
Inventory Turnover 21.7 19
Debt Ratio 64.7% 50%
Times Interest Earned 4.8 5.5
Gross Profit Margin 13.6% 12.0%
Net Profit Margin 1.0% 0.5%
Return on total assets 2.9% 2.0%
Return on Equity 8.2% 4.0%
Income Statement
Dana Dairy Products
For the Year Ended December 31, 2009
_________________________________________________________________
Sales Revenue $100,000
Less: Cost of Goods Sold 87,000
Gross Profits $ 13,000
Less: Operating Expenses 11,000
Operating Profits $ 2,000
Less: Interest Expense 500
Net Profits Before Taxes $ 1,500
Less: Taxes (40%) 600
Net Profits After Taxes $ 900
Balance Sheet
Dana Dairy Products
December 31, 2009
ASSETS
_________________________________________________________________
Cash $ 1,000
Accounts Receivable 8,900
Inventories 4,350
Total Current Assets $14,250
Gross Fixed Assets $35,000
Less: Accumulated Depreciation 13,250
Net Fixed Assets 21,750
Total Assets $36,000
LIABILITIES & STOCKHOLDERS EQUITY
_________________________________________________________________
Accounts Payable $ 9,000
Accruals 6,675
--
Total Current Liabilities $15,675
Longterm Debts 4,125
Total Liabilities $19,800
Common Stock 1,000
Retained Earnings 15,200
--
Total Stockholders' Equity $16,200
-
Total Liab. & S.E. $36,000
Evaluate the financial results of Dana Dairy Products for fiscal year end 2009 in the following areas; liquidity, activity, debt, profitability, and market.
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Management Accounting And Strategic Human Resource Management
Authors: John Innes, Reza Kouhy
1st Edition
1859714862, 978-1859714867
