Question
Found below is the balance sheet, income statement, and other pertinent data for XYZ Co. for the 2017 year. Balance Sheet Assets Cash $ 14,000
Found below is the balance sheet, income statement, and other pertinent data for XYZ Co. for the 2017 year.
Balance Sheet
Assets
Cash $ 14,000
Short-term investments 71,632
Accounts receivable 878,000
Inventories 1,716,480
Total Current Assets 2,680,112
Gross fixed assets 1,220,000
Less: Accumulated depreciation (383,160)
Net fixed assets 836,840
Total Assets $ 3,516,952
Liabilities and Equity
Accounts Payable $ 359,800
Notes Payable 300,000
Accruals 380,000
Total Current Liabilities 1,039,800
Long-term debt 500,000
Common stock 1,680,936
Retained Earnings 296,216
Total liabilities and equity $ 3,516,952
Income Statement
Sales $ 7,035,600
Cost of goods sold except depreciation 5,800,000
Depreciation and amortization 120,000
Other expenses 612,960
Total operating costs $ 6,532,960
EBIT $ 502,640
Interest expense 80,000
Pre-tax earnings 422,640
Taxes (40%) (169,056)
Net Income $ 253,584
Other Data
Stock price $12.17
Shares outstanding 250,000
EPS $1.014
Dividends per share $0.220
Tax rate 40%
Book value per share $7,909
Lease payments $40,000
From the above information compute the following and tell if you want the ratio, number, or times larger or smaller and why.
Current ratio -
Quick ratio -
Inventory turnover
Total asset turnover
Days sales outstanding
Debt ratio
Price/Earnings (P/E) ratio
Profit margin -
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started