Given the financial statements attached, relating to Aladdin Company, answer the following questions What is the percent increase in sales between 2006 and 2007 and also between 2007 and 2008 Are sales developing in a promising fashion Aladdin was concerned that some cost components are growing in a worrying manner How has the COGS developed, compared to sales, from 2006 to 2007 to 2008 What are your conclusions The bank which loaned the company the bank loan is interested in how the current ratio and quick ratio are developing over the three years What is your conclusion Aladdin also, periodically, wants to make sure that the activity ratios are OK, both year to year and in comparison to the industry as a whole What is the Inventory turnovers for the three years The average collection periods for the three years The total asset turnover for each of the three years Given that for the industry as a whole, the above three ratios average 1 5, 62 days and 2 1, what are your conclusions The bank which loaned Aladdin the long term loan is particularly interested in the last years leverage ratios What are the debt ratio and the times interest earned ratio for 2008 Aladdin is especially interested in the development of the profitability ratios over the three years 2006, 2007 and 2008 How has the gross profit margin developed over the 3 years How has the operating profit margin developed over the 3 years How has the net profit margin developed over the three years How have ROA and ROE developed over the three years Are you concerned about the trend Why or why not Financial statement Income Statement Balance sheet 2006 2007 2008 2006 2007 2008 Net sales 1300 1500 1800 Cash 50 40 10 COGS 780 900 1260 A R 200 260 360 Gross profit 520 600 540 Inventories 450 500 600 Marketing expense 130 150 200 Total C A 700 800 970 G A 150 150 200 Fixed assets, net 300 400 500 Depreciation 40 53 60 Total assets 1000 1200 1470 EBIT 200 247 80 Interest 45 57 70 A P 130 170 180 EBT 155 190 10 Accruals 50 70 80 Income taxes (40 ) 62 76 4 Notes payable 90 90 184 Net income 93 114 6 Total C L 270 330 444 LT debt 300 400 550 Common stock issued 350 350 350 Retained earnings 80 120 126 Total owners equity 430 470 476 Total liabilities and equity 1000 1200 1470

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Posted on Sep 23, 2024

. Given the financial statements attached, relating to Aladdin Company, answer the following questions:

What is the percent increase in sales between 2006 and 2007 and also between 2007 and 2008? Are sales developing in a promising fashion?
Aladdin was concerned that some cost components are growing in a worrying manner. How has the COGS developed, compared to sales, from 2006 to 2007 to 2008? What are your conclusions?
The bank which loaned the company the bank loan is interested in how the current ratio and quick ratio are developing over the three years. What is your conclusion?
Aladdin also, periodically, wants to make sure that the activity ratios are OK, both year to year and in comparison to the industry as a whole. What is the:

Inventory turnovers for the three years

The average collection periods for the three years

The total asset turnover for each of the three years

Given that for the industry as a whole, the above three ratios average 1.5, 62 days and 2.1, what are your conclusions?

The bank which loaned Aladdin the long term loan is particularly interested in the last years leverage ratios. What are the debt ratio and the times interest earned ratio for 2008?
Aladdin is especially interested in the development of the profitability ratios over the three years 2006, 2007 and 2008.

How has the gross profit margin developed over the 3 years?

How has the operating profit margin developed over the 3 years?

How has the net profit margin developed over the three years?

How have ROA and ROE developed over the three years?

Are you concerned about the trend? Why or why not?

Financial statement:

Income Statement				Balance sheet
	2006	2007	2008		2006	2007	2008
Net sales	1300	1500	1800	Cash	50	40	10
COGS	780	900	1260	A/R	200	260	360
Gross profit	520	600	540	Inventories	450	500	600
Marketing expense	130	150	200	Total C/A	700	800	970
G&A	150	150	200	Fixed assets, net	300	400	500
Depreciation	40	53	60	Total assets	1000	1200	1470
EBIT	200	247	80
Interest	45	57	70	A/P	130	170	180
EBT	155	190	10	Accruals	50	70	80
Income taxes (40%)	62	76	4	Notes payable	90	90	184
Net income	93	114	6	Total C/L	270	330	444
				LT debt	300	400	550
				Common stock issued	350	350	350
				Retained earnings	80	120	126
				Total owners equity	430	470	476
				Total liabilities and equity	1000	1200	1470