MINI-CASE 1: Financial Ratio Calculations and Analysis You are given the following balance sheet and income...

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MINI-CASE 1: Financial Ratio Calculations and Analysis You are given the following balance sheet and income statement information for Ultra Corporation: Balance Sheet for Ultra Corporation Assets Short term (current) assets Short term liabilities Cash and marketable securities $300 Accounts payable $1300 Accounts receivable 500 1000 Total short-term liabilities $1800 Total short-term assets $2100 Fixed Assets Less depreciation ---500 Net fixed assets Total assets $1000 Shareholders' equity $3100 348 Chapter 11 Investing in Stocks Income Statement for Ultra Corporation Cost of goods sold Gross profit Operating expences Earnings before taxes T Earnings after t $4000 $1100 830 50 50 What is the purpose of Ultra Corporation's balance sheet and income statement? Use the infor mation in the financial statements above to calculate the liquidity, financial leverage, efficiency, and profitability ratios for Ultra Corporation. Using these ratios, describe your impressions of Ultra Corporation's firm-specific characteristics. The table below displays the average ratios for similar firms in the industry in which Ultra Corporation operates Table 1 Average Industry Ratios Current ratio 22 Net profit margin 442% Average collection 44 days Return on assets 113% 347% 67 126 Return on equity 17.1% MINI-CASE 1: Financial Ratio Calculations and Analysis You are given the following balance sheet and income statement information for Ultra Corporation: Balance Sheet for Ultra Corporation Assets Short term (current) assets Short term liabilities Cash and marketable securities $300 Accounts payable $1300 Accounts receivable 500 1000 Total short-term liabilities $1800 Total short-term assets $2100 Fixed Assets Less depreciation ---500 Net fixed assets Total assets $1000 Shareholders' equity $3100 348 Chapter 11 Investing in Stocks Income Statement for Ultra Corporation Cost of goods sold Gross profit Operating expences Earnings before taxes T Earnings after t $4000 $1100 830 50 50 What is the purpose of Ultra Corporation's balance sheet and income statement? Use the infor mation in the financial statements above to calculate the liquidity, financial leverage, efficiency, and profitability ratios for Ultra Corporation. Using these ratios, describe your impressions of Ultra Corporation's firm-specific characteristics. The table below displays the average ratios for similar firms in the industry in which Ultra Corporation operates Table 1 Average Industry Ratios Current ratio 22 Net profit margin 442% Average collection 44 days Return on assets 113% 347% 67 126 Return on equity 17.1%