Question
In the Appendix (Chapter 16 Appendix: A Sample Business Plan (Links to an external site.)Links to an external site.), you will find the income statements
In the Appendix (Chapter 16 Appendix: A Sample Business Plan (Links to an external site.)Links to an external site.), you will find the income statements and balance sheets for Franks All-American BarBeQue for the years 2006 to 2010. Compute some of the key financial ratios (at least six ratios) for this business and discuss the meanings of any trends. Compute at least one ratio from each of the following categories: liquidity ratios, financial leverage ratios, profitability ratios, asset management or efficiency ratios, and market value ratios.
| Past Performance | 2008 | 2009 | 2010 |
| Sales | $1,637,610 | $1,696,564 | $1,793,268 |
| Gross margin | $851,557 | $909,358 | $943,259 |
| Gross margin % | 52.00% | 53.60% | 52.60% |
| Operating expenses | $542,080 | $577,315 | $600,408 |
| Inventory turnover | 13.20 | 12.10 | 12.90 |
| Balance Sheet | 2008 | 2009 | 2010 |
| Current Assets | |||
| Cash | $102,665 | $125,172 | $102,665 |
| Inventory | $391,238 | $331,045 | $345,678 |
| Other current assets | $278,372 | $230,074 | $278,372 |
| Total current assets | $772,275 | $686,291 | $726,715 |
| Long-Term Assets | |||
| Long-term assets | $504,580 | $388,820 | $423,675 |
| Accumulated depreciation | $180,856 | $135,739 | $145,765 |
| Total long-term assets | $323,724 | $253,081 | $277,910 |
| Total assets | $1,095,999 | $939,372 | $1,004,625 |
| Current Liabilities | |||
| Accounts payable | $155,534 | $132,206 | $145,321 |
| Current borrowing | $170,000 | $150,000 | $135,000 |
| Other current liabilities (interest free) | $81,888 | $63,972 | $74,329 |
| Total current liabilities | $407,422 | $346,178 | $354,650 |
| Long-term liabilities | $220,000 | $190,000 | $175,000 |
| Total liabilities | $627,422 | $536,178 | $529,650 |
| Paid-in capital | $75,000 | $75,000 | $75,000 |
| Retained earnings | $281,838 | $234,377 | $287,114 |
| Earnings | $111,739 | $93,817 | $112,861 |
| Total capital | $468,577 | $403,194 | $474,975 |
| Total capital and liabilities | $1,095,999 | $939,372 | $1,004,625 |
| Other Inputs | |||
| Payment Days | 30 | 30 | 30 |
| Assets | 2011 | 2012 | 2013 | 2014 | 2015 |
| Current Assets | |||||
| Cash | $1,172,844 | $2,209,415 | $3,521,573 | $4,979,631 | $6,591,014 |
| Inventory | $72,421 | $79,197 | $109,296 | $117,245 | $125,954 |
| Other current assets | $278,372 | $278,372 | $278,372 | $278,372 | $278,372 |
| Total current assets | $1,523,636 | $2,566,983 | $3,909,241 | $5,375,249 | $6,995,341 |
| Long-Term Assets | |||||
| Long-term assets | $583,675 | $583,675 | $583,675 | $583,675 | $583,675 |
| Accumulated depreciation | $145,765 | $145,765 | $145,765 | $145,765 | $145,765 |
| Total long-term assets | $437,910 | $437,910 | $437,910 | $437,910 | $437,910 |
| Total assets | $1,961,546 | $3,004,893 | $4,347,151 | $5,813,159 | $7,433,251 |
| Liabilities and Capital | 2011 | 2012 | 2013 | 2014 | 2015 |
| Current Liabilities | |||||
| Accounts payable | $189,416 | $193,009 | $259,021 | $275,791 | $296,597 |
| Current borrowing | $135,000 | $135,000 | $135,000 | $135,000 | $135,000 |
| Other current liabilities | $20,329 | ($33,671) | ($87,671) | ($87,671) | ($87,671) |
| Subtotal current liabilities | $344,745 | $294,338 | $306,350 | $323,120 | $343,926 |
| Long-term liabilities | $262,400 | $174,800 | $174,800 | $174,800 | $174,800 |
| Total liabilities | $607,145 | $469,138 | $481,150 | $497,920 | $518,726 |
| Paid-in capital | $75,000 | $75,000 | $75,000 | $75,000 | $75,000 |
| Retained earnings | $399,975 | $1,279,402 | $2,460,755 | $3,791,002 | $5,240,239 |
| Earnings | $879,427 | $1,181,354 | $1,330,246 | $1,449,237 | $1,599,285 |
| Total capital | $1,354,402 | $2,535,755 | $3,866,002 | $5,315,239 | $6,914,524 |
| Total liabilities and capital | $1,961,546 | $3,004,893 | $4,347,151 | $5,813,159 | $7,433,251 |
| Net worth | $1,354,402 | $2,535,755 | $3,866,002 | $5,315,239 | $6,914,524 |
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Technical Analysis Of Stock Trends
Authors: Robert D. Edwards, John Magee, W.H.C. Bassetti
10th Edition
1439898189, 978-1439898185
