Industrial Management

3. Find the Current Ratio. Acid Test Ratio. Debt-to-Assets Ratio, Inventory Turnover, Asset Turnover. Accounts Receivable Turnover and Profit Margin by using the following balance sheet and income statement which is supplied in the next page. Note: Show all your calculations! (35 pts.) Balance Sheet ASSETS LIABILITIES $ $ Current assets Cash Petty cash Temporary investments Accounts receivable - net Inventory Supplies Prepaid insurance Total current assets 2,100 100 10,000 40,500 31,000 3,800 1,500 89,000 Current liabilities Notes payable Accounts payable Wages payable Interest payable Taxes payable Warranty liability Unearned revenues Total current liabilities 5.000 35.900 8,500 2.900 6.100 1,100 1.500 61,000 Investments 36,000 Long-term liabilities Notes payable Bonds payable Total long-term liabilities 20.000 400.000 420.000 5,500 6,500 180,000 201,000 (56,000) 337,000 Total liabilities 481,000 Property, plant & equipment Land Land improvements Buildings Equipment Less: accum depreciation Prop, plant & equip-net Intangible assets Goodwill Trade names Total intangible assets Other assets 105,000 200,000 305,000 STOCKHOLDERS' EQUITY Common stock Retained earnings Accum other comprehensive income Less: Treasury stock Total stockholders' equity Total liabilities & stockholders' equity 110,000 220,000 9,000 (50,000) 289.000 3,000 Total assets $ 770,000 $ 770,000 Income Statement Sales (all on credit) Cost of goods sold Gross profit $500,000 380,000 120,000 Operating expenses Selling expenses Administrative expenses Total operating expenses 35,000 45,000 80,000 Operating income Interest expense 40,000 12,000 Income before taxes Income tax expense Net income after taxes 28,000 5,000 $ 23,000 $ 0.23 Earnings per share (based on 100,000 shares outstanding)