From Chapter 4 1. Use the attached income and balance sheet statements to calculate: (a) Liquidity Ratios; (b) Capital Structure Ratios; (c) Asset Management Efficiency Ratios; (d) Profitability Ratios; and (e) Market Value Ratios Table 4.2 H. J. Boswell, Inc. 2009 2010 Change Cash 5.4% 4.6% -0.8% Accounts receivable 7.9% 8.2% 0.3% Inventory 13.0% 19.2% 6.2% Other current assets 0.8% 0.7% -0.1% Total current assets 27.0% 32.6% 5.6% 94.6% 93.6% -1.0% Gross plant and equipment Less accumulated depreciation Net plant and equipment Total assets -21.7% -26.3% -4.6% 73.0% 67.4% -5.6% 100.0% 100.0% 0.0% 2009 2010 Change Accounts payable 10.5% 9.6% -0.9% Accrued expenses 2.6% 2.3% -0.3% 3.6% Short-term notes Total current liabilities 2.796 -0.8% 16.6% 14.6% -2.0% 40.8% 39.2% -1.7% 57.4% 53.8% -3.6% Long-term debe Total debt Common stockholders' equity Common stock par value Paid in capital Retained earning Total common stockholders' equily Total abilities and equity 2.6% 2.34 -0.39 18.44 16.49 21.7% 27.55 -1.95 5.89 3.65 42. 100.0% 1000 0.04 mon Size Income Statement 1. Boswell, Inc.) Table 4.1 H. J. Boswell, Inc. Common Size Income Statement for the Year Ending December 31, 2010 Sales 100.0% Cost of goods sold --75.0% Gross profits 25.0% Operating expenses: Selling expenses -3.3% General and administrative expense -2.5% Depreciation and amortization expense -5.0% Total operating expense -10.8% Operating income (EBIT or earnings before interest and taxes) 14.2% Interest expense -2.5% Earnings before taxes 11.7% Income taxes -4.1% Net income 7.69 4-18 From Chapter 4 1. Use the attached income and balance sheet statements to calculate: (a) Liquidity Ratios; (b) Capital Structure Ratios; (c) Asset Management Efficiency Ratios; (d) Profitability Ratios; and (e) Market Value Ratios Table 4.2 H. J. Boswell, Inc. 2009 2010 Change Cash 5.4% 4.6% -0.8% Accounts receivable 7.9% 8.2% 0.3% Inventory 13.0% 19.2% 6.2% Other current assets 0.8% 0.7% -0.1% Total current assets 27.0% 32.6% 5.6% 94.6% 93.6% -1.0% Gross plant and equipment Less accumulated depreciation Net plant and equipment Total assets -21.7% -26.3% -4.6% 73.0% 67.4% -5.6% 100.0% 100.0% 0.0% 2009 2010 Change Accounts payable 10.5% 9.6% -0.9% Accrued expenses 2.6% 2.3% -0.3% 3.6% Short-term notes Total current liabilities 2.796 -0.8% 16.6% 14.6% -2.0% 40.8% 39.2% -1.7% 57.4% 53.8% -3.6% Long-term debe Total debt Common stockholders' equity Common stock par value Paid in capital Retained earning Total common stockholders' equily Total abilities and equity 2.6% 2.34 -0.39 18.44 16.49 21.7% 27.55 -1.95 5.89 3.65 42. 100.0% 1000 0.04 mon Size Income Statement 1. Boswell, Inc.) Table 4.1 H. J. Boswell, Inc. Common Size Income Statement for the Year Ending December 31, 2010 Sales 100.0% Cost of goods sold --75.0% Gross profits 25.0% Operating expenses: Selling expenses -3.3% General and administrative expense -2.5% Depreciation and amortization expense -5.0% Total operating expense -10.8% Operating income (EBIT or earnings before interest and taxes) 14.2% Interest expense -2.5% Earnings before taxes 11.7% Income taxes -4.1% Net income 7.69 4-18