Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

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

image text in transcribedimage text in transcribed

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

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Meetings Expositions Events And Conventions An Introduction To The Industry

Authors: George Fenich

5th Edition

0134735900, 9780134735900

More Books

Students also viewed these Finance questions

Question

Define learning and list at least three learning principles

Answered: 1 week ago