exercise 10

ABC Manufacturing Balance Sheet of 2014 Cash Marketable Securities Account Receivables 20,000 22,000 45.000 100,000 Accounts Payale Accruals Notes Payable ring the pu Wo model 1A require ale. Which mento Fixed Assets Land Buildings Machinery Gross Fixed Assets Less: Accumulated Depreciation Net Fixed Assets Other Assets 40,000 56,000 75,000 171,000 36.000 135,000 5,000 Long term Debt Total abilities Stockholders Equity Preferred Stocks Common Stock Paid in capital Retained earnings Total Stockholders Equity Total abilities and equity 58.000 145.000 327,000 Total Assets 327,000 ABC Manufacturing Income Statement for 2014 * 1.000 Preferred Stocks $20 par value Principal Payments maturing this year are $12.000 Lease Payments are 11,000 520,000 374,400 145.600 REQUIRED: Claculate all Ratios explained in class Evaluate Liquidity, Activity, Debt and Profitability using Ratios Evaluate Profitability using DUPONT 61.000 38,000 Total sales less: Cost of Good Sold -Gross Profit Less: Operatinf Expenses Selling Expenses General & Adm. Expenses Lease Expenses Depreciation Total Operating Expenses - Operating profits (EBIT) less: Interest Expenses Net profit before takes less taxes Net profit after taxes less: Preferred stock dividends Camings available for common stockholder 110,000 35,600 26, 100 7.RO 1,500 16,770 Purchases represents 72% of Cost of Goods sold Outstanding Common Shares are 12,500 Market Value (Price) of Common Stock-$28.00 All sales were on credit 2014 Financial Ratios current ratio quick ratio inventory turnover Average Collection period Total Assets Turnover Fixed Assets Turnover Debt Ratio Times interest Earned Profit Margin Company 2012 2013 1.84 1.871 0.85 0.88 4.8 5.01 33.12 32.15 1.57 1.58 3.56 3.68 58.00% 57.50% 4.25 3.98 4,10% 3.70% 4.75% 5.10% 11.90% 12.15% Industry 2014 1.83 0.87 5 34.00 1.55 3.75 52.00% 5.31 4.90% 7.60% 15.82% Return on equity