Question
Please, I do not want the solution by hand Please, I do not want the solution by hand Modern Appliances Corporation has reported its financial
Modern Appliances Corporation has reported its financial results for the year ended December 31, 2011.
Modern Appliances Corporation | |
Income Statement for the Fiscal | 31-Dec-11 |
Sales | 5,398,412,000 |
Cost of goods sold | 3,432,925,255 |
Gross profit margin | 1,965,486,745 |
Selling, general, and admin. expenses | 1,036,311,231 |
Depreciation | 299,928,155 |
Operating income | 629,247,359 |
Interest expense | 35,826,000 |
EBT | 593,421,359 |
Income taxes | 163,104,554 |
Net earnings | 430,316,805 |
Consolidated Balance Sheet Modern Appliances Corporation Balance Sheet as of December 31, 2011 | |||
Assets | Liabilities and Stockholders Equity | ||
Cash and cash equivalents | $ 514,412,159 | Short-term borrowing | $ 117,109,865 |
Accounts receivable | 1,046,612,233 | Trade accounts payable | 466,937,985 |
Inventories | 981,870,990 | Other current liabilities | 994,289,383 |
Other current assets | 313,621,610 |
| |
Total current assets | $2,856,516,992 | Total current liabilities | $1,578,337,233 |
Net fixed assets | 754,660,275 | Long-term debt | 1,200,691,565 |
|
| Total liabilities | $2,779,028,798 |
Goodwill | 118,407,710 | Common stock | 397,407,352 |
Other assets | 665,058,761 | Retained earnings | 1,218,207,588 |
|
| Total equity | 1,615,614,940 |
Total assets | $4,394,643,738 | Total liabilities and stockholders equity | $4,394,643,738 |
Using the information from the financial statements, complete a comprehensive ratio analysis for Modern Appliances Corporation.
a. Calculate these liquidity ratios: current and quick ratios. (0.2 mark)
b Calculate these efficiency ratios: inventory turnover, total asset turnover. (0.2 mark)
c Calculate these leverage ratios: total debt ratio, debt-to-equity ratio, Equity multiplier. (0.2 mark)
d Calculate these profitability ratios: gross profit margin, net profit margin, ROA, ROE. (0.2 mark)
f. Use the DuPont identity, and after calculating the component ratios, compute the ROE for this firm. (0.2 mark)
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