Everything needs to be in formula mode. I'm having trouble with that.
Zimmer, Inc. has provided its recent financial statements. The Controller has asked you to use this information to compute and interpret financial ratios that managers are going to use to assess liquidity and use for asset and debt management purposes. Use the information included in the Excel Simulation and the Excel functions described below to complete the task. . Cell Reference: Allows you to refer to data from another cell in the worksheet. From the Excel Simulation below, if in a blank cell, "-37" was entered the formula would output the result from cell B7, or 360,000 in this example Basic Math functions: Allows you to use the basic math symbols to perform mathematical functions. You can use the following keys. + (plus sign to add).- minus sign to subtract) " (astensk sign to multiply), and (forward stash to divide). From the Excel Simulation below, if in a blank cel-C13-C14" was entered the formula would add the values from those cells and output the result, or 1.900,000 in this example. I using the other math symbols the result would output an appropriate answer for its function ROUND function: Allows you to round a number or result of a formula calculation to a specific number of digits. The syntax of the ROUND function is ROUND(numbecnum_digits)" and returns the result of your formula rounded to a particular number of digits. The number argument can be a cell reference to a number or a formula itself that results in a number The num digits argument is the number of digits you want to round. The nuncigits value rounds based on basis mathematical rounding rules, where anything below 5 wit round down and anytning 5 and above rounds up. Also, the num.digits value should be a positive value to round to any number of decimal places, while a negative value would round to the left of the decimal place and a zero would round to the nearest whole number. If the value 1253.5693 was entered in cell Al, it can be used in the ROUND function as the number reference. In this example, if the value in cell At should be rounded to 2 decimar places in a new cell the function would be written as ROUND A12)" and would result in as 125357 in this example the number in cell Al should be founded to the nearest hundred place in a new cell the function would be written as ROUND(AI, 2) and would result in 1,300 in this example, All answers must be entered as a formula. Click OK to begin OK B E This Year $ 4,980,000 2.988000 3.992.000 1 Recent financial statements for Zimmer, Inc. are as follows: 2 Zimmer Company Zimmer Company 3 Comparative Balance Sheet Income Statement 4 This Year Last Year 5 Assets 6 Current assets 7 Cash s 360,000 $ 310,000 Sales (all on account) 8 Marketable securities 220,000 80,000 Cost of goods sold 9 Accounts receivable, net 775,000 700,000 Gross margin Inventory 925,000 750,000 Selling and administrative expenses Other current assets 355.000 195.000 Operating expenses 12 Total current assets 2,635,000 2.035,000 Depreciation and amortization 13 Plant and equipment net 1,975.000 1,800,000 General and administrative expenses 14 Other assets 25.000 100.000 Total selling and administrative expenses 15 Totalets 4.635.000 1935.000 Net operating income 16 Libilities and Stockholders' Equity Interest expense 17 Current Liabilities Net Income before taset Accounts payable 250.000 $ 225.000 income 19 Short-term bank loans 750.000 500 000 Net income 20 Rccrued pobles 550,000 395.000 21 Other current bites 225000 225.00 Add banal information 985,500 410.500 150.000 1.546.000 446,000 60.000 385.000 185 100 135 A1 X Recent financial statements for Zimmer, Inc. are as follows: B C E F 1,992.000 S 9 Accounts receivable, net 10 Inventory 11 Other current assets 12 Total current assets 13 Plant and equipment, net 14 Other assets 15 Total assets 16 Liabilities and Stockholders' Equity 17 Current abilities: 18 Accounts payable 19 Short-term bank loans 20 Accrued payables 21 Other current liabilities 22 Total current liabilities 25 Bonds payable 10% 24 Totalbilities 25 Stockholders equity 26 Common stock 27 Retained coming 26 Total stockholders' equity 20 Totalbies and stockholders equity 775,000 700,000 Gross margin 925,000 750,000 Selling and administrative expenses 355,000 195,000 Operating expenses 2,635,000 2,035,000 Depreciation and amortization 1,975,000 1,800,000 General and administrative expenses 75,000 100,000 Total selling and administrative expenses 4.685.000 S 3,935.000 Net operating income Interest expense Net Income before taxes 250,000 S 225,000 Income taxes 750,000 600,000 Net income 550.000 395,000 275.000 223.400 Additional information: 1.825,000 1.443,400 Dividend per share paid in current year 575.000 400.000 Market price of shares at year end 2.400.000 1.343400 Par value of common stock per thare 985,500 410,500 150.000 1.546,000 446,000 60.000 386,000 135.100 $ 250.900 S $ 1.00 42.00 20.00 Number of share outstanding 1.150.000 1155.000 2285 000 1.150.000 941 600 2092.500 B 29 Total liabilities and stockholders' equity 30 S 4,685,000 S 3,935.000 31 Required: 32 Compute the following ratios for the current year only: 33 Gross margin percentage 34 Current ratio (rounded to two decimal places) 35 Acid-test ratio (rounded to two decimal places) 36 Accounts receivable turnover (rounded to two decimal places) 37 Average collection period (rounded to the nearest whole day) 38 Inventory turnover ratio (rounded to two decimal places) 39 Average sales period (rounded to the nearest whole day) 40 Debt-to-equity ratio (rounded to two decimal places) Times interest earned (rounded to two decimal places) 42 Book value per share (rounded to two decimal places) 43 Earnings per share (rounded to two decimal places) Dividend payout ratio (rounded to three decimal places) 45 Dividend yield ratio (rounded to three decimal places 46 Price-earnings ratio (rounded to two decimal places 47 48 49 50
