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please answer all parts. thank you!! The income statement and balance sheet for HOYT, Inc. are provided below. (Note that the reported figures are expressed
please answer all parts. thank you!!
The income statement and balance sheet for HOYT, Inc. are provided below. (Note that the reported figures are expressed in thousands of dollars). Current assets Cash Accounts receivable Inventory Total Fixed assets Net plant and equipment Total assets HOYT, INC. Balance Sheets as of December 31, 2020 and 2021 (in 000s) 2020 2021 Assets $ 100 $ 115 170 170 120 150 $ 390 $ 435 $500 $ 600 $ 890 $1,035 2020 Liabilities and Owners' Equity Current liabilities Accounts payable Notes payable Total Long-term debt Owners' equity Common stock Accumulated retained earnings Total Equity Total liabilities and owners' equity $75 $ 100 $175 $ $250 $ $ 190 $ 275 $ 465 $ 2021 165 120 285 290 113 347 460 $890 $1,035 HOYT, INC. 2021 Income Statement (in 000s) Sales Cost of goods sold Depreciation EBIT Interest paid Taxable income Taxes Net income Dividends Retained earnings $ 216 72 $ $ LA $ EA LA $ 900 500 18 382 18 364 76 288 Requirement #1: Calculate each of the following ratios for HOYT, Inc. for 2021 only and complete the table below. (Do not round intermediate calculations. Round your answers to 4 decimal places (e.g., 0.9173 or 2.1648). Input profit margin, return on assets, and return on equity as percentages (e.g., if the Profit Margin = 0.1576, input your answer as 15.76). Industry Average 2.1004 1.3652 0.8493 a. Current ratio b. Quick ratio c. Total asset turnover d. Inventory turnover e. Total debt ratio f. Equity Multiplier g. Times interest earned ratio h. Profit margin i. Return on assets j. Return on equity 2021 Operating Efficiency Liquidity Shareholder Return Financial Leverage Asset Use Efficiency 1.5263 times 1.0000 times 0.8696 times 3.3333 times 0.5556 times 2.2500 21.2222 times 32.00% 29.9221% 62.2703% 2.7699 0.6491 2.8497 Requirement #2: Use the ratios you calculated in Requirement #1 and the industry averages given in the table above to determine if HOYT, Inc. is "above average" or "below average" in each of the following areas of financial performance. (Click to select) above average below average (Click to select) (Click to select) (Click to select) 31.1176 27.55% 23.40% 66.68% Requirement #3: Based on DuPont analysis, how would you explain the difference in the return on equity (ROE) for HOYT, Inc. vs. the industry as a whole in 2021 (.e., why is the ROE for HOYT higher/lower than the ROE for the average firm in the industry)? I The income statement and balance sheet for HOYT, Inc. are provided below. (Note that the reported figures are expressed in thousands of dollars). Current assets Cash Accounts receivable Inventory Total Fixed assets Net plant and equipment Total assets HOYT, INC. Balance Sheets as of December 31, 2020 and 2021 (in 000s) 2020 2021 Assets $ 100 $ 115 170 170 120 150 $ 390 $ 435 $500 $ 600 $ 890 $1,035 2020 Liabilities and Owners' Equity Current liabilities Accounts payable Notes payable Total Long-term debt Owners' equity Common stock Accumulated retained earnings Total Equity Total liabilities and owners' equity $75 $ 100 $175 $ $250 $ $ 190 $ 275 $ 465 $ 2021 165 120 285 290 113 347 460 $890 $1,035 HOYT, INC. 2021 Income Statement (in 000s) Sales Cost of goods sold Depreciation EBIT Interest paid Taxable income Taxes Net income Dividends Retained earnings $ 216 72 $ $ LA $ EA LA $ 900 500 18 382 18 364 76 288 Requirement #1: Calculate each of the following ratios for HOYT, Inc. for 2021 only and complete the table below. (Do not round intermediate calculations. Round your answers to 4 decimal places (e.g., 0.9173 or 2.1648). Input profit margin, return on assets, and return on equity as percentages (e.g., if the Profit Margin = 0.1576, input your answer as 15.76). Industry Average 2.1004 1.3652 0.8493 a. Current ratio b. Quick ratio c. Total asset turnover d. Inventory turnover e. Total debt ratio f. Equity Multiplier g. Times interest earned ratio h. Profit margin i. Return on assets j. Return on equity 2021 Operating Efficiency Liquidity Shareholder Return Financial Leverage Asset Use Efficiency 1.5263 times 1.0000 times 0.8696 times 3.3333 times 0.5556 times 2.2500 21.2222 times 32.00% 29.9221% 62.2703% 2.7699 0.6491 2.8497 Requirement #2: Use the ratios you calculated in Requirement #1 and the industry averages given in the table above to determine if HOYT, Inc. is "above average" or "below average" in each of the following areas of financial performance. (Click to select) above average below average (Click to select) (Click to select) (Click to select) 31.1176 27.55% 23.40% 66.68% Requirement #3: Based on DuPont analysis, how would you explain the difference in the return on equity (ROE) for HOYT, Inc. vs. the industry as a whole in 2021 (.e., why is the ROE for HOYT higher/lower than the ROE for the average firm in the industry) Step by Step Solution
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