LO4 P12-8A. Ratios Compared with Industry Averages Because you own the common stock of Phantom Corporation, a paper manufacturer, you decide to analyze the firm's performance for the most recent year. The following data are taken from the firm's latest annual report: Quick assets... Inventory and prepaid expenses Other assets Total Assets Current liabilities 10% Bonds payable 8% Preferred stock, $100 par value Common stock, $10 par value Retained earings Total Liabilities and Stockholders' Equity Dec. 31, 2020 700,000 372.000 4,788,000 $5,860,000 $724,000 1,440,000 480.000 2,700,000 516.000 $5.860.000 Dec 31, 2019 $ 552,000 312.000 4,200,000 $5,064,000 $ 564,000 1,440,000 480.000 2,160,000 420.000 $5.064 000 For 2020, net sales amount to $11,280,000, net income is $575,000, and preferred stock dividends paid are $42.000 Required a Calculate the following ratios for 2020: 1 Profit margin 2 Return on assets 3 Return on common stockholders' equity 4 Quick ratio S Current ratio 6. Debt-to-equity ratio b. Trade association statistics and information provided by credit agencies reveal the following data on industry norms: Median Upper Quartile Profit margin Return on assets Return on common stockholders' oquity. Quick ratio Current ratio Debt-to-equity ratio. 4.9 percent 6.5 percent 10.6 percent 1.0 1.8 1.08 8.6 percent 11.2 percent 17.3 percent 1.8 3.0 0.66 Compare Phantom Corporation's performance with industry performance. LO4 P12-8A. Ratios Compared with Industry Averages Because you own the common stock of Phantom Corporation, a paper manufacturer, you decide to analyze the firm's performance for the most recent year. The following data are taken from the firm's latest annual report: Quick assets... Inventory and prepaid expenses Other assets Total Assets Current liabilities 10% Bonds payable 8% Preferred stock, $100 par value Common stock, $10 par value Retained earings Total Liabilities and Stockholders' Equity Dec. 31, 2020 700,000 372.000 4,788,000 $5,860,000 $724,000 1,440,000 480.000 2,700,000 516.000 $5.860.000 Dec 31, 2019 $ 552,000 312.000 4,200,000 $5,064,000 $ 564,000 1,440,000 480.000 2,160,000 420.000 $5.064 000 For 2020, net sales amount to $11,280,000, net income is $575,000, and preferred stock dividends paid are $42.000 Required a Calculate the following ratios for 2020: 1 Profit margin 2 Return on assets 3 Return on common stockholders' equity 4 Quick ratio S Current ratio 6. Debt-to-equity ratio b. Trade association statistics and information provided by credit agencies reveal the following data on industry norms: Median Upper Quartile Profit margin Return on assets Return on common stockholders' oquity. Quick ratio Current ratio Debt-to-equity ratio. 4.9 percent 6.5 percent 10.6 percent 1.0 1.8 1.08 8.6 percent 11.2 percent 17.3 percent 1.8 3.0 0.66 Compare Phantom Corporation's performance with industry performance
