FINANCIAL MANAGEMENT

Pls calculate and analyse the performance of Morton company and the industry as given in the question

-Current ratios & DSO - Inventory turnover & Fixed assets turnover - Total Assets turnover & Profit margin - ROA & ROE

Use this formula

ental Concepts of Corporate Finance Morton Chip Company: Balance Sheet as of December 31, 2010 (Thousands of Dollars) $129,000 Cash Accounts payable $ 77,500 84,000 Receivables Notes payable 336,000 117,000 Inventories Other current liabilities 241,500 Total current assets $655,000 Total current liabilities $330,000 Net fixed assets 292,500 Long-term debt 256,500 Common equity 361,000 $947,500 Total liabilities and equity $947,500 Total assets Morton Chip Company: Income Statement for Year Ended December 31, 2010 (Thousands of Dollars) $1,607,500 Sales Cost of goods sold 1,392,500 Selling, general, and administrative expenses 145,000 Earnings before interest and taxes (EBIT) S 70,000 24,500 Earnings before taxes (EBT) S 45,500 Federal and state income taxes (40%) 18,200 Net income S 27,300 Interest expense Ratio Morton Current assets/Current liabilities Days sales outstanding Sales/Inventory Sales/Fixed assets Sales/Total assets Net income/Sales Net income/Total assets Net income/Common equity Total debt Total assets Industry Average 2.0 35.0 days 6.7 12.1 3.0 1.2% 3.6% 9.0% 60.0% "Calculation is based on a 365-day year. 3-14) The Timeno