Answered step by step
Verified Expert Solution
Link Copied!

Question

00
1 Approved Answer

please solve these math. I need it urgent. Financial statement analysis The financial statements of Zach Industries for the year ended December 31, 2015, follow.

image text in transcribed

image text in transcribed

image text in transcribed

please solve these math. I need it urgent.

Financial statement analysis The financial statements of Zach Industries for the year ended December 31, 2015, follow. $160,000 106,000 $ 54,000 Zach Industries Income Statement for the Year Ended December 31, 2015 Sales revenue Less: Cost of goods sold Gross profits Less: Operating expenses Selling expense General and administrative expenses Lease expense Depreciation expense Total operating expense Operating profits Less: Interest expense Net profits before taxes Less: Taxes Net profits after taxes $ 16,000 10,000 1,000 10,000 $ 37,000 $ 17,000 6,100 $ 10,900 4,360 $ 6,540 Zach Industries Balance Sheet December 31, 2015 Assets Cash Marketable securities Accounts receivable Inventories Total current assets Land Buildings and equipment Less: Accumulated depreciation Net fixed assets Total assets $ 500 1,000 25,000 45,500 $ 72,000 $ 26,000 90,000 38,000 $ 78,000 $150,000 Liabilities and Stockholders' Equity Accounts payable 22,000 Notes payable 47,000 Total current liabilities $ 69,000 Long-term debt 22,950 Common stock 31,500 Retained earnings 26,550 Total liabilities and stockholders' equity $ 150,000 "The firm's 3,000 outstanding shares of common stock closed 2015 at a price of $25 per share. a. Use the preceding financial statements to complete the following table. Assume that the industry averages given in the table are applicable for both 2014 and 2015. Actual 2014 Actual 2015 1.84 0.78 Ratio Current ratio Quick ratio Inventory turnover" Average collection period Debt ratio Times interest earned ratio Gross profit margin Net profit margin Return on total assets Return on common equity Market/book ratio Industry average 1.80 0.70 2.50 37.5 days 65% 3.8 38% 3.5% 4.0% 9.5% 1.1 2.59 36.5 days 67% 4.0 40% 3.6% 4.0% 8.0% 1.2 Based on a 365-day year and on end-of-year figures. b. Analyze Zach Industries' financial condition as it is related to (1) liquidity, (2) activity, (3) debt, (4) profitability, and (5) market. Summarize the company's overall financial condition

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access with AI-Powered Solutions

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

Step: 2

blur-text-image

Step: 3

blur-text-image

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

Chemical Principles

Authors: Steven S. Zumdahl, Donald J. DeCoste

7th edition

978-1111580650

Students also viewed these Finance questions

Question

When should you avoid using exhaust brake select all that apply

Answered: 1 week ago