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I need help with finance. Ratio analysis and calculation on excel. Very short problem. Please let me know if you can get it done as
I need help with finance. Ratio analysis and calculation on excel. Very short problem. Please let me know if you can get it done as soon as possible. Thanks
BUSI 320 Comprehensive Problem 1 Use the following information to answer the questions below: note: all sales are credit sales Income Stmt info: Sales $ less Cost of Goods Sold: Gross Profit 2013 1,050,000 $ 325,000 725,000 2014 1,128,750 346,125 782,625 Operating Expenses Earnings before Interest & Taxes Interest exp earnings before Taxes Taxes Net Income $ 575,000 150,000 25,000 125,000 50,000 75,000 $ 609,500 173,125 29,000 144,125 57,650 86,475 Balance Sheet info: Cash Accounts Receivable 12/31/2013 60,000 $ 80,000 $ 12/31/2014 66,000 83,200 Inventory Total Current Assets Fixed Assets (Net) $ $ 110,000 $ 250,000 $ 300,000 $ 119,900 269,100 318,000 Total Assets $ 550,000 $ 587,100 Current Liabilities Long Term Liabilities Total Liabilities $ $ $ 130,000 $ 150,000 $ 280,000 $ 136,500 170,000 306,500 Stockholder's Equity $ 270,000 $ 280,600 Total Liab & Equity: $ 550,000 $ 587,100 Compute each of the following ratios for 2013 and 2014 and indicate whether each ratio was getting "better" or "worse" from 2013 to 2014 and whether the 2014 ratio was "good" or "bad" compared to the Industry Avg (round all numbers to 2 digits past the decimal place) 2013 Profit Margin Current Ratio Quick Ratio Return on Assets Debt to Assets Receivables turnover Avg. collection period* Inventory Turnover** Return on Equity Times Interest Earned Getting Better or Getting 2014 Worse? "Good" or "Bad" 2014 compared Industry to Industry Avg Avg 0.11 1.90 1.12 0.26 0.55 18.00 21.20 8.25 0.25 8.15 *Assume a 360 day year **Inventory Turnover can be computed 2 different ways. Use the formula listed in the text (the one the text indicates many credit reporting agencies generally use)Step by Step Solution
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