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Heifer Sports Financial Statements Income Statement 2021 Sales $ 5,500,000 Cost of Goods Sold 2,850,000 Depreciation 280,000 Selling and Administrative Expenses 1,500,000 EBIT $ 870,000
Heifer Sports Financial Statements | ||
Income Statement | 2021 | |
Sales | $ 5,500,000 | |
Cost of Goods Sold | 2,850,000 | |
Depreciation | 280,000 | |
Selling and Administrative Expenses | 1,500,000 | |
EBIT | $ 870,000 | |
Interest Expense | 130,000 | |
Taxable Income | $ 740,000 | |
Taxes | 330,000 | |
Net Income | $ 410,000 | |
Heifer Sports currently has 1,000,000 shares of common stock outstanding and a market price of $4.92 per share. | ||
Balance Sheet | Dec. 31, 2021 | Dec. 31, 2020 |
Assets | ||
Cash | $ 50,000 | $ 40,000 |
Accounts Receivable | 660,000 | 690,000 |
Inventory | 490,000 | 480,000 |
Total Current Assets | $ 1,200,000 | $ 1,210,000 |
Fixed Assets | 3,100,000 | 2,800,000 |
Total Assets | $ 4,300,000 | $ 4,010,000 |
Liabilities | ||
Accounts Payable | $ 340,000 | $ 450,000 |
Short-Term Debt | 480,000 | 550,000 |
Total Current Liabilities | $ 820,000 | $ 1,000,000 |
Long-Term Bonds | 2,520,000 | 2,200,000 |
Total Liabilities | $ 3,340,000 | $ 3,200,000 |
Shareholders Equity | ||
Common Stock | $ 310,000 | $ 310,000 |
Retained Earnings | 650,000 | 500,000 |
Total Shareholders Equity | $ 960,000 | $ 810,000 |
Total Liabilities and Shareholders Equity | $ 4,300,000 | $ 4,010,000 |
Use Heifer Sports financial statements to find three of these financial ratios. For each one that you find, explain what it measures.
- Inventory Turnover Ratio.
- Debt to Equity Ratio.
- Average Collection Period.
- Interest Coverage Ratio.
- Operating Profit Margin.
- Return on Equity.
- P/E Ratio.
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