Earnings per share (EPS) Ratio Industry average, 2012 Current ratio Quick ratio Inventory turnover 4.55 Average collection period 35.8 days Total asset turnover 1.09 Debt ratio 0.300 Times interest earned ratio 12.3 Gross profit margin 0.202 Operating profit margin 0.135 Net profit margin 0.091 Return on total assets (ROA) 0.099 Return on common equity (ROE) 0.167 Earnings per share (EPS) $3.10 "Based on a 365-day year and on end-of-year figures. 20026BBOERCEDES 2 WERUAUDOBBL 10 DUBOOOOO JOOMONMODEL SC Carl ACCOUNTS TCCNADIE -22 Cross-sectional ratio analysis Use the financial statements below and on page 106 for Fox Manufacturing Company for the year ended December 31, 2012, along with the industry average ratios below, to: a. Prepare and interpret a complete ratio analysis of the firm's 2012 operations. b. Summarize your findings and make recommendations. Fox Manufacturing Company Income Statement for the Year Ended December 31, 2012 $600,000 460,000 $140,000 Sales revenue Less: Cost of goods sold Gross profits Less: Operating expenses General and administrative expenses Depreciation expense Total operating expense Operating profits Less: Interest expense Net profits before taxes Less: Taxes Net profits after taxes (earnings available for common stockholders) $30,000 30,000 60,000 $ 80,000 10,000 $ 70,000 27.100 $ 42.900 ABBORREREDE Fox Manufacturing Company Balance Sheet December 31, 2012 Assets Cash Marketable securities Accounts receivable Inventories Total current assets Net fixed assets Total assets $ 15,000 7,200 34,100 82,000 $138,300 270,000 $408,300 Liabilities and Stockholders' Equity Accounts payable Notes payable Accruals Total current liabiliti Long-term debt Common stock equity (20,000 shares outstanding) Retained earnings Total stockholders' equity Total liabilities and stockholders' equity $ 57,000 13,000 5.000 $ 75,000 $150,000 $110,200 73.100 $183,300 S408,300 bola ONUNOMODO Alt PnSc Cid Poup Ctrien Alt Earnings per share (EPS) Ratio Industry average, 2012 Current ratio Quick ratio Inventory turnover 4.55 Average collection period 35.8 days Total asset turnover 1.09 Debt ratio 0.300 Times interest earned ratio 12.3 Gross profit margin 0.202 Operating profit margin 0.135 Net profit margin 0.091 Return on total assets (ROA) 0.099 Return on common equity (ROE) 0.167 Earnings per share (EPS) $3.10 "Based on a 365-day year and on end-of-year figures. 20026BBOERCEDES 2 WERUAUDOBBL 10 DUBOOOOO JOOMONMODEL SC Carl ACCOUNTS TCCNADIE -22 Cross-sectional ratio analysis Use the financial statements below and on page 106 for Fox Manufacturing Company for the year ended December 31, 2012, along with the industry average ratios below, to: a. Prepare and interpret a complete ratio analysis of the firm's 2012 operations. b. Summarize your findings and make recommendations. Fox Manufacturing Company Income Statement for the Year Ended December 31, 2012 $600,000 460,000 $140,000 Sales revenue Less: Cost of goods sold Gross profits Less: Operating expenses General and administrative expenses Depreciation expense Total operating expense Operating profits Less: Interest expense Net profits before taxes Less: Taxes Net profits after taxes (earnings available for common stockholders) $30,000 30,000 60,000 $ 80,000 10,000 $ 70,000 27.100 $ 42.900 ABBORREREDE Fox Manufacturing Company Balance Sheet December 31, 2012 Assets Cash Marketable securities Accounts receivable Inventories Total current assets Net fixed assets Total assets $ 15,000 7,200 34,100 82,000 $138,300 270,000 $408,300 Liabilities and Stockholders' Equity Accounts payable Notes payable Accruals Total current liabiliti Long-term debt Common stock equity (20,000 shares outstanding) Retained earnings Total stockholders' equity Total liabilities and stockholders' equity $ 57,000 13,000 5.000 $ 75,000 $150,000 $110,200 73.100 $183,300 S408,300 bola ONUNOMODO Alt PnSc Cid Poup Ctrien Alt