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Please answer below questions: 4' each. 4A. The current ratio for Dana Dairy Products in 2013 was 4B. The net working capital for Dana Dairy
Please answer below questions: 4' each. 4A. The current ratio for Dana Dairy Products in 2013 was 4B. The net working capital for Dana Dairy Products in 2013 was 4C. The inventory turnover for Dana Dairy Products in 2013 was 4D. The average collection period for Dana Dairy Products in 2013 was 4E. The debt ratio for Dana Dairy Products in 2013 was 4F. The return on total assets for Dana Dairy Products for 2013 was Table 1 Key Ratios Income Statement Actual 2013 Industry Average Current ratio 1.3 Quick ratio 0.8 Average collection period 23 days Inventory tumover 21.7 Debt ratio 64.7% Times interest earned 4.8 Gross profit margin 136% Net profit margin 1.07% Return on total assets 2.9% Return on equity 8.2% Actual 2012 1.0 0.75 30 days 19 50% 5.5 12.0% 0.5% 2.0% 4.0% Sales revenue Less: Cost of goods sold Gross profits Less: Operating expenses Operating profits Less: Interest expense Net profits before taxes Less: Taxes (40%) Net profits after taxes $100,000 87,000 $ 13,000 11,000 $ 2,000 500 $ 1,500 600 900 Balance Sheet Assets Cash Accounts receivable Inventories Total current assets Gross fixed assets $35,000 Less: Accumulated depreciation 13,250 Net fixed assets Total assets $1,000 8,900 4,350 $14,250 21,750 $36,000 Liabilities & Stockholders' Equity Accounts payable Accruals Total current liabilities Long-term debt Total liabilities Common stock Retained earnings Total stockholders' equity Total liabilities & stockholders equity $ 9,000 6,675 $15,675 4,125 $19,800 1,000 15,200 $16,200 $36,000
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