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ple do it question 12345 the brick vs. leons Income statement Net sales Cost of goods Gross profit operating expenses income from operations other income

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ple do it question 12345

the brick vs. leons Income statement Net sales Cost of goods Gross profit operating expenses income from operations other income interest expense Income before Tax Income tax expense net income The brick 1,214,405 739,505 474,900 440,203 34,697 1,087 5,233 30,551 1,232 29,319 The brick Leons Profitability Leons Gross profit margin 547,744 EBIT 323,629 EBIT to percentage of sales 224,115 Net profit margin 170,048 Return on equity 54,067 Return on assets 20,658 Asset turnover Liquidity 74,725 Current ratio 25,761 quick ratio 48,964 DSO ART Leons Inventory days on hand Inventory turnover 20,592 solvency & market value 20,705 Interest coverage 72,644 debt to equity ratio 75,749 Debt to assets 189,690 182,023 1. Calculate the above Ratios 32 marks 9,989 2. Comment on each company's profitablility 4 marks 381,702 3. Comment on each company's Liquidity 4 marks 4. Comment on each company's Solvency 4 marks 99,579 5. If you were an investory, which company would you rather invest in? Balance sheet The brick cash & equivalents A/R Inventories r Other current assets Total current assets plant, property & equipment other assets TOTAL ASSETS 29,201 54,192 193,670 7,310 284,373 602,241 37,286 923,900 current liabilites 278,213 cash & equivalents A/R Inventories Other current assets Total current assets plant, property & equipment other assets TOTAL ASSETS 29,201 54,192 193,670 7,310 284,373 602,241 37,286 923,900 E F Inventory turnover 20,592 solvency & market value 20,705 Interest coverage 72,644 debt to equity ratio 75,749 Debt to assets 189,690 182,023 1. Calculate the above Ratios 32 marks 9,989 2. Comment on each company's profitablility 4 marks 381,702 3. Comment on each company's Liquidity 4 marks 4. Comment on each company's Solvency 4 marks 99,579 5. If you were an investory, which company would you rather invest in? 21,685 Give reasons for your answers. 6 marks 121,264 260,438 381,702 current liabilites L/T liabilites Total liabilities Shareholders equity .T.L. + shareholders equity 278,213 167,298 445,511 478,389 923,900 45862 181266 r average A/R 3 average inventories 7 average total assets - average shareholders equity 3 # of outstanding common sha 7 dividend B 892,000 494890 750,000 20,000 19234 71962 376316 255152 368,000 25,000 9 0 1

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