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Please show all work for all parts of this question! Thank you! Use the DelCo. 2018 Financial Statements to answer questions 1 - 13 Fill
Please show all work for all parts of this question! Thank you!
Use the DelCo. 2018 Financial Statements to answer questions 1 - 13 Fill in the missing ratios for DelCo. based on their 2018 financial statements (end of the exam). There are 11 ratios to calculate - each one is worth 3 points. Use the Industry Averages and the ratios you find to answer questions 12 and 13. Ratio DelCo. Industry Average Work 1) Current Ratio 2.0 2) Quick Ratio 1.4 7.5 3) Inventory Turnover Days Sales Outstanding 45 5) Fixed Assets Turnover 2.1 6) Total Assets Turnover 1.3 7) 51% Debt Ratio Times Interest Earned Ratio 8) 7.5 9) Profit Margin 9.2% 10) Return on Assets 11.0% 11) Return on Equity 17% How is DelCo. doing in terms of debt management and profitability when compared to the industry? Compare all ratios and percentages relevant to debt management and profitability. How is DelCo. doing in terms of liquidity and asset management when compared to the industry? Compare all ratios and percentages relevant to liquidity and asset management. Delco. Financial Statements DelCo.: Balance Sheet as of 12/31/18 (thousands of dollars) Assets Liabilities and equity Cash and cash equivalents $24,000 Accounts payable Accounts Receivable 52,500 Notes payable Inventories 84,000 Other current liabilities Total current assets $160,500 Total current liabilities Net fixed assets 220,400 Long-term debt Common equity Total assets $380,900 Total liabilities and equity $35,000 13,500 35,000 $83,500 90,500 206,900 $380,900 DelCo.: Income Statement for Year Ended 12/31/18 (thousands of dollars) Sales $440,000 Cost of goods sold 300,000 Selling, general, and administrative expenses 19,660 EBIT $120,340 Interest Expense 52,000 $68,340 Taxes (40%) 27,336 Net Income $41,004Step by Step Solution
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