Mark and Todd agree that a ratio analysis can provide a measure of the company's performance. They have chosen Boeing as an aspirant company. Would you choose Boeing as an aspirant company? Why or why not? S&S AIR, INC. 2016 Income Statement Sales Cost of goods sold Other expenses Depreciation EBIT Interest Taxable income Taxes (40%) Net income Dividends Additions to retained earnings $24,092,400 17,982,000 2,878,800 786,000 $ 2,445,600 434,400 $ 2,011,200 804,480 $ 1,206,720 $246,000 960,720 S&S AIR, INC. 2016 Balance Sheet Assets Liabilities and Equity Current liabilities Accounts payable Notes payable Total current liabilities $ 858,816 1,735,680 $ 2,594,496 Current assets Cash $ 438,048 Accounts receivable 1,841,616 Inventory 1,486,200 Total current assets $ 3,765,864 Fixed assets Net plant and $14,778,816 equipment $ 4,590,000 Long-term debt Shareholder equity Common stock Retained earnings Total equity Total liabilities and equity $ 180,000 $11,180, 184 $11,360,184 $18,544.680 Total assets $18,544,680 Light Airplane Industry Ratios Lower Quartile Median Upper Quartile .50 1.43 1.89 1.05 .84 .21 .85 .39 6.15 Current ratio Quick ratio Cash ratio Total asset turnover Inventory turnover Receivables turnover Total debt ratio Debt-equity ratio Equity multiplier Times interest earned Cash coverage ratio Profit margin Return on assets Return on equity .08 .68 4.89 6.27 .31 .58 1.58 5.18 5.84 4.05% 6.05% 9.93% 9.82 .52 1.08 2.08 8.06 8.43 5.15% 10.53% 16.54% 1.28 10.89 11.51 .61 1.56 2.56 9.83 10.27 6.47% 13.21% 26.15% Mark and Todd agree that a ratio analysis can provide a measure of the company's performance. They have chosen Boeing as an aspirant company. Would you choose Boeing as an aspirant company? Why or why not? S&S AIR, INC. 2016 Income Statement Sales Cost of goods sold Other expenses Depreciation EBIT Interest Taxable income Taxes (40%) Net income Dividends Additions to retained earnings $24,092,400 17,982,000 2,878,800 786,000 $ 2,445,600 434,400 $ 2,011,200 804,480 $ 1,206,720 $246,000 960,720 S&S AIR, INC. 2016 Balance Sheet Assets Liabilities and Equity Current liabilities Accounts payable Notes payable Total current liabilities $ 858,816 1,735,680 $ 2,594,496 Current assets Cash $ 438,048 Accounts receivable 1,841,616 Inventory 1,486,200 Total current assets $ 3,765,864 Fixed assets Net plant and $14,778,816 equipment $ 4,590,000 Long-term debt Shareholder equity Common stock Retained earnings Total equity Total liabilities and equity $ 180,000 $11,180, 184 $11,360,184 $18,544.680 Total assets $18,544,680 Light Airplane Industry Ratios Lower Quartile Median Upper Quartile .50 1.43 1.89 1.05 .84 .21 .85 .39 6.15 Current ratio Quick ratio Cash ratio Total asset turnover Inventory turnover Receivables turnover Total debt ratio Debt-equity ratio Equity multiplier Times interest earned Cash coverage ratio Profit margin Return on assets Return on equity .08 .68 4.89 6.27 .31 .58 1.58 5.18 5.84 4.05% 6.05% 9.93% 9.82 .52 1.08 2.08 8.06 8.43 5.15% 10.53% 16.54% 1.28 10.89 11.51 .61 1.56 2.56 9.83 10.27 6.47% 13.21% 26.15%