Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Pls calculate the ratios for 2015 & 2016 Please show work ( adding numbers or cell ) which ever is fine. Thank you. Next Technologies:

Pls calculate the ratios for 2015 & 2016

image text in transcribed

image text in transcribedimage text in transcribed

Please show work ( adding numbers or cell ) which ever is fine. Thank you.

Next Technologies: December 31 Balance Sheets (,000) Next Technologies December 31 Income Statements (,000) Assets Cash and cash equivalents Short-term investments Accounts Receivable Inventories Total current assets Net fixed assets Total assets 2016 2015 $21,000 $20,000 3,759 3,240 55,500 48,000 84,000 56,000 $164,259 $127,240 221,400 200,000 $385.659 $327.240 2016 Sales $430,000 COGS except excluding depr. and amort. 300,000 Depreciation and Amortization 19,660 Other operating expenses 27,600 EBIT $82,740 Interest Expense 5,740 EBT $77,000 Taxes (40%) 30,800 Net Income $46.200 2015 $401,000 298,000 18,000 22.000 $63,000 4.470 $58,530 23,412 $35.118 Common dividends Addition to retained earnings $18,125 $28,075 $17,262 $17,856 Liabilities and equity Accounts payable Accruals Notes payable Total current liabilities Long-term debt Total liabilities Common stock Retained Earnings Total common equity Total liabilities and equity $33,600 $32,000 12,600 12,000 19.929 6,480 $66,129 $50,480 67,662 58,320 $133,791 $108,800 183,793 178,440 68,075 40,000 $251,868 $218,440 $385.659 $327.240 Other Data Year-end Stock Price # of shares (Thousands) Lease payment (Thousands of Dollars) Sinking fund payment (Thousands of Dol 2016 $90.00 4,052 $20,000 $5,000 2015 $96.00 4,000 $20,000 $5,000 Ratio Analysis 2016 2015 Industry Avg Has Next's liquidity position improved or worsened? Explain. 2.68 1.54 - 7.70 47.50 - How has Next's profitability changed during the last year? Liquidity Ratios Current Ratio Quick Ratio Asset Management Ratios Inventory Turnover (Total COGS/Inventories) Days Sales Outstanding Debt Management Ratios Debt Ratio (Total debt-to-assets) Times-interest-earned ratio Profitability Ratios Profit Margin Return on Assets Return on Equity Market Value Ratios Earnings per share Price-to-earnings ratio Book Value per share Market-to-book ratio 21.0% 15.33 - 8.89% 10.93% 16.10% - NA 10.55 NA 1.72 Perform a common size analysis. What has happened to the composition (that is, percentage in each category) of assets and liabilities? 2016 2015 2016 2015 Common Size Balance Sheets Assets Cash and cash equivalents Short-term investments Accounts Receivable Inventories Total current assets Net fixed assets Total assets Liabilities and equity Accounts payable Accruals Notes payable Total current liabilities Long-term debt Total liabilities Common stock Retained Earnings Total common equity Total liabilities and equity 2016 2015 Answer: Common Size Income Statements Sales COGS except excluding depr. and amort. Depreciation and Amortization Other operating expenses EBIT Interest Expense EBT Taxes (40%) Net Income Next Technologies: December 31 Balance Sheets (,000) Next Technologies December 31 Income Statements (,000) Assets Cash and cash equivalents Short-term investments Accounts Receivable Inventories Total current assets Net fixed assets Total assets 2016 2015 $21,000 $20,000 3,759 3,240 55,500 48,000 84,000 56,000 $164,259 $127,240 221,400 200,000 $385.659 $327.240 2016 Sales $430,000 COGS except excluding depr. and amort. 300,000 Depreciation and Amortization 19,660 Other operating expenses 27,600 EBIT $82,740 Interest Expense 5,740 EBT $77,000 Taxes (40%) 30,800 Net Income $46.200 2015 $401,000 298,000 18,000 22.000 $63,000 4.470 $58,530 23,412 $35.118 Common dividends Addition to retained earnings $18,125 $28,075 $17,262 $17,856 Liabilities and equity Accounts payable Accruals Notes payable Total current liabilities Long-term debt Total liabilities Common stock Retained Earnings Total common equity Total liabilities and equity $33,600 $32,000 12,600 12,000 19.929 6,480 $66,129 $50,480 67,662 58,320 $133,791 $108,800 183,793 178,440 68,075 40,000 $251,868 $218,440 $385.659 $327.240 Other Data Year-end Stock Price # of shares (Thousands) Lease payment (Thousands of Dollars) Sinking fund payment (Thousands of Dol 2016 $90.00 4,052 $20,000 $5,000 2015 $96.00 4,000 $20,000 $5,000 Ratio Analysis 2016 2015 Industry Avg Has Next's liquidity position improved or worsened? Explain. 2.68 1.54 - 7.70 47.50 - How has Next's profitability changed during the last year? Liquidity Ratios Current Ratio Quick Ratio Asset Management Ratios Inventory Turnover (Total COGS/Inventories) Days Sales Outstanding Debt Management Ratios Debt Ratio (Total debt-to-assets) Times-interest-earned ratio Profitability Ratios Profit Margin Return on Assets Return on Equity Market Value Ratios Earnings per share Price-to-earnings ratio Book Value per share Market-to-book ratio 21.0% 15.33 - 8.89% 10.93% 16.10% - NA 10.55 NA 1.72 Perform a common size analysis. What has happened to the composition (that is, percentage in each category) of assets and liabilities? 2016 2015 2016 2015 Common Size Balance Sheets Assets Cash and cash equivalents Short-term investments Accounts Receivable Inventories Total current assets Net fixed assets Total assets Liabilities and equity Accounts payable Accruals Notes payable Total current liabilities Long-term debt Total liabilities Common stock Retained Earnings Total common equity Total liabilities and equity 2016 2015 Answer: Common Size Income Statements Sales COGS except excluding depr. and amort. Depreciation and Amortization Other operating expenses EBIT Interest Expense EBT Taxes (40%) Net Income

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

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

Practical Financial Management

Authors: William R. Lasher

4th Edition

0324260768, 9780324260762

More Books

Students also viewed these Finance questions

Question

=+a) Test appropriate hypotheses and state your conclusion.

Answered: 1 week ago

Question

Describe the team dynamics at Facebook.

Answered: 1 week ago