Please assist with constructing the income statement, balance sheet and the ratios asked.

Your unique question number is 29 mnoggle@go.olemiss.edu The intent of this assignment is just basic accounting and financial statement construction. These will get more complicated over the course of the semester, but this one is just to ensure that everyone is on the same page. Pay close attention to the notes at the end of the assignment and the definitions posted to the blackboard site (Ratio Definitions and Case Analysis). Check the syllabus for the due date! Below are numbers from a balance sheet and income statement. Construct the financial ratios requested below. Sales 472355 Operating Costs 343413 Depreciation 10000 Interest 5000 Taxes 29408 Cash 1000 Receivables 30000 Inventories 57235 Fixed Assets, Net 50000 Payables 11000 Accrued Expenses 10000 Long-Term Loan Common Equity 50000 67235 DEPARTMENT OF MANAGEMENT, SCHOOL OF BUSINESS ADMINISTRATION Holman Hall 339 | University, MS 38677-1848 | (662) 259-0163 | rjgentry@olemiss.edu | faculty.bus.olemiss.edu/rgentry/ Assignment Notes: Answers are correct if they are within 5% of the correct response. Submit as many times as you would like before the submission deadline. I will take the most recent submissions. Use excel to solve these problem. It reduces rounding problems and is an important skill to have. Grade appeals will be based on your Excel sheet. Submitted answers should have two decimals places (i.e, 0.01). For things that are percentages, submit them as 2 whole numbers and two decimal places - 23.20%. The margin for error on the grade is based off a two-decimal place calculation. Definitions for the ratios are on the course site (towards the bottom). Be careful, ROA, for example has several different definitions in the popular press so stick to these definitions rather than something you find through Google. Accruals are debts that are soon due but have not yet been paid out - things like the salary owed to employees between pay periods show up as accruals Assignment: Prepare an income statement and a balance sheet for is company using the information provided. Calculate: 1. Current ratio 2. Quick ratio 3. NWC-to-total-Assets (Working capital to assets) 4. Ratio of total debt and liabilities to total assets 5. Ratio of total debt and liabilities to shareholder's equity 6. Interest coverage 7. Net profit margin 8. Sales to total assets (Asset turnover) 9. Return on assets 10. Equity multiplier 11. Return on equity Instructions: Submit your answers to the Google Docs website: Submission link Do not email me your responses. DEPARTMENT OF MANAGEMENT, SCHOOL OF BUSINESS ADMINISTRATION Holman Hall 339 | University, MS 38677-1848 | (662) 259-0163 | rjgentry@olemiss.edu | faculty.bus.olemiss.edu/rgentry/ SolutionBalance Sheet Amount $50,000 $67,235 $10,000 $11,000 $138,235 Liabilities Long-Term Loan Common Equity Accrued Expenses Payables Income Statement Sales LessOperating Costs Income from operations Interest Income before income tax Taxes Net Income $472,355 $343,413 $128,942 $5,000 $123,942 $29,408 $94,534 Ratios1 Current ratio = Current Assets/Current Liabilities Current ratio 2 Quick ratio = Quick Assets/Current Liabilities Quick ratio 3 51% Ratio of total debt and liabilities to shareholder's equity = Total debt and liabilities / Shareholder's equity Ratio of total debt and liabilities to shareholder's equity 6 48.99 Ratio of total debt and liabilities to total assets = Total debt and liabilities / Total Assets Ratio of total debt and liabilities to total assets 5 1.34 NWC-to-total-Assets (Working capital to assets) = [Net Working Capital / Net Total Assets]*100 NWC-to-total-Assets (Working capital to assets) 4 4.20 1.06 Interest coverage = EBIT /Interest Expense Interest coverage 25.79 7 Net profit margin = Net Income/Net Sales Net profit margin 8 Sales to total assets (Asset turnover) = Net Sales/Average Total Assets Sales to total assets (Asset turnover) 9 1.37 Equity multiplier = Total Assets/ Total Shareholder's equity Equity multiplier 11 6.83 Return on assets = Net Income/Average Total Assets Return on assets 10 20.01% 2.06 Return on Equity = Net Income/ Total Shareholder's equity Return on Equity 1.41 Assets Cash Receivables Inventories Fixed Assets, Net older's equity Amount $1,000 $30,000 $57,235 $50,000 $138,235 SolutionBalance Sheet Amount $50,000 $67,235 $10,000 $11,000 $138,235 Liabilities Long-Term Loan Common Equity Accrued Expenses Payables Income Statement Sales LessOperating Costs Depreciation Income from operations Interest Income before income tax Taxes Net Income $472,355 $343,413 $10,000 $118,942 $5,000 $113,942 $29,408 $84,534 Ratios1 Current ratio = Current Assets/Current Liabilities Current ratio 2 Quick ratio = Quick Assets/Current Liabilities Quick ratio 3 51% Ratio of total debt and liabilities to shareholder's equity = Total debt and liabilities / Shareholder's equity Ratio of total debt and liabilities to shareholder's equity 6 48.99 Ratio of total debt and liabilities to total assets = Total debt and liabilities / Total Assets Ratio of total debt and liabilities to total assets 5 1.34 NWC-to-total-Assets (Working capital to assets) = [Net Working Capital / Net Total Assets]*100 NWC-to-total-Assets (Working capital to assets) 4 4.20 Interest coverage = EBIT /Interest Expense 1.06 Interest coverage 7 Net profit margin = Net Income/Net Sales Net profit margin 8 1.22 Equity multiplier = Total Assets/ Total Shareholder's equity Equity multiplier 11 6.83 Return on assets = Net Income/Average Total Assets Return on assets 10 17.90% Sales to total assets (Asset turnover) = Net Sales/Average Total Assets Sales to total assets (Asset turnover) 9 23.79 2.06 Return on Equity = Net Income/ Total Shareholder's equity Return on Equity 1.26 Assets Cash Receivables Inventories Fixed Assets, Net older's equity Amount $1,000 $30,000 $57,235 $50,000 $138,235 SolutionBalance Sheet Amount $50,000 $67,235 $10,000 $11,000 $138,235 Liabilities Long-Term Loan Common Equity Accrued Expenses Payables Income Statement Sales LessOperating Costs Income from operations Interest Income before income tax Taxes Net Income $472,355 $343,413 $128,942 $5,000 $123,942 $29,408 $94,534 Ratios1 Current ratio = Current Assets/Current Liabilities Current ratio 2 Quick ratio = Quick Assets/Current Liabilities Quick ratio 3 51% Ratio of total debt and liabilities to shareholder's equity = Total debt and liabilities / Shareholder's equity Ratio of total debt and liabilities to shareholder's equity 6 48.99 Ratio of total debt and liabilities to total assets = Total debt and liabilities / Total Assets Ratio of total debt and liabilities to total assets 5 1.34 NWC-to-total-Assets (Working capital to assets) = [Net Working Capital / Net Total Assets]*100 NWC-to-total-Assets (Working capital to assets) 4 4.20 1.06 Interest coverage = EBIT /Interest Expense Interest coverage 25.79 7 Net profit margin = Net Income/Net Sales Net profit margin 8 Sales to total assets (Asset turnover) = Net Sales/Average Total Assets Sales to total assets (Asset turnover) 9 1.37 Equity multiplier = Total Assets/ Total Shareholder's equity Equity multiplier 11 6.83 Return on assets = Net Income/Average Total Assets Return on assets 10 20.01% 2.06 Return on Equity = Net Income/ Total Shareholder's equity Return on Equity 1.41 Assets Cash Receivables Inventories Fixed Assets, Net older's equity Amount $1,000 $30,000 $57,235 $50,000 $138,235 SolutionBalance Sheet Amount $50,000 $67,235 $10,000 $11,000 $138,235 Liabilities Long-Term Loan Common Equity Accrued Expenses Payables Income Statement Sales LessOperating Costs Depreciation Income from operations Interest Income before income tax Taxes Net Income $472,355 $343,413 $10,000 $118,942 $5,000 $113,942 $29,408 $84,534 Ratios1 Current ratio = Current Assets/Current Liabilities Current ratio 2 Quick ratio = Quick Assets/Current Liabilities Quick ratio 3 51% Ratio of total debt and liabilities to shareholder's equity = Total debt and liabilities / Shareholder's equity Ratio of total debt and liabilities to shareholder's equity 6 48.99 Ratio of total debt and liabilities to total assets = Total debt and liabilities / Total Assets Ratio of total debt and liabilities to total assets 5 1.34 NWC-to-total-Assets (Working capital to assets) = [Net Working Capital / Net Total Assets]*100 NWC-to-total-Assets (Working capital to assets) 4 4.20 Interest coverage = EBIT /Interest Expense 1.06 Interest coverage 7 Net profit margin = Net Income/Net Sales Net profit margin 8 1.22 Equity multiplier = Total Assets/ Total Shareholder's equity Equity multiplier 11 6.83 Return on assets = Net Income/Average Total Assets Return on assets 10 17.90% Sales to total assets (Asset turnover) = Net Sales/Average Total Assets Sales to total assets (Asset turnover) 9 23.79 2.06 Return on Equity = Net Income/ Total Shareholder's equity Return on Equity 1.26 Assets Cash Receivables Inventories Fixed Assets, Net older's equity Amount $1,000 $30,000 $57,235 $50,000 $138,235