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Financial Statement Analysis Assignment Module 8 Chapter 16- Financial Statement Analysis - Assignment ABC Co pald a common stock dividend of $.55 per share and
Financial Statement Analysis Assignment
Module 8 Chapter 16- Financial Statement Analysis - Assignment
ABC Co pald a common stock dividend of $.55 per share and its common stock sold for $2.75 at the end of this year. Below are data excerpted from its financial statements.
Ending Balance Beginning Balance
Cash
$35,000
$30,000
Accounts receivable
$60,000
$50,000
Inventory
$55,000
$60,000
Current assets
$150,000
$140,000
Total assets
$450,000
$460,000
Current habilities
$60,000
$40,000
Total babilities
$130,000
$120,000
Common stock, $1 par value
$120,000
$120,000
Total stockholders' equity
$320,000
$340,000
Total liabilities and stockholders' equity
$450,000
$460,000
This Year
Sales (all on account)
$700,000
Cost of goods sold
$400,000
Gross margin
$300,000
Net operating income
$140,000
Interest expense
$5,000
Net income
$92,400
Required:
1. What is the earnings per share?
2. What is the price-earnings ratio?
3. What is the dividend payout ratio and the dividend yield ratio?
4. What is the return on total assets (assuming a 30% tax rate)?
5. What is the return on equity?
6. What is the book value per share at the end of this year?
7. What is the amount of working capital and the current ratio at the end of this year?
8. What is the acid-test ratio at the end of this year?
9. What is the accounts receivable turnover and the average collection period?
10. What is the inventory turnover and the average sale period?
11. What is the company's operating cycle?
12. What is the total asset turnover?
13. What is the times interest earned ratio?
14. What is the debt-to-equity ratio at the end of this year?
15. What is the equity multiplier?
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