Question
Problem 3-13 Axtel Company has the following financial statements. Axtel Company Balance Sheet For the period ended 12/31/X1 ($000) ASSETS 12/31/X0 12/31/X1 Cash $ 3490
Problem 3-13
Axtel Company has the following financial statements.
| Axtel Company | ||||||
| Balance Sheet | ||||||
| For the period ended 12/31/X1 ($000) | ||||||
| ASSETS | ||||||
| 12/31/X0 | 12/31/X1 | |||||
| Cash | $ | 3490 | $ | 2900 | ||
| Accounts receivable | 6756 | 5240 | ||||
| Inventory | 2573 | 3220 | ||||
| CURRENT ASSETS | $ | 12819 | $ | 11360 | ||
| Fixed assets | ||||||
| Gross | $ | 22478 | $ | 24360 | ||
| Accumulated deprec. | (12137) | (12995) | ||||
| Net | $ | 10341 | $ | 11365 | ||
| TOTAL ASSETS | $ | 23160 | $ | 22725 | ||
| LIABILITIES | ||||||
| Accounts payable | $ | 1511 | $ | 1666 | ||
| Accruals | 250 | 385 | ||||
| CURRENT LIABILITIES | $ | 1761 | $ | 2051 | ||
| Long-term debt | $ | 7112 | $ | 6002 | ||
| Equity | 14287 | 14672 | ||||
| TOTAL CAPITAL | $ | 21399 | $ | 20674 | ||
| TOTAL LIABILITIES AND EQUITY | $ | 23160 | $ | 22725 | ||
| Axtel Company | |||
| Income Statement | |||
| For the period ended 12/31/X1 | |||
| ($000) | |||
| Sales | $ | 36223 | |
| COGS | 19711 | ||
| Gross margin | $ | 16512 | |
| Expense | $ | 11082 | |
| EBIT | $ | 5430 | |
| Interest | 713 | ||
| EBT | $ | 4717 | |
| Tax | 1605 | ||
| Net income | $ | 3112 | |
In addition, Axtel retired stock for $1,000,000 and paid a dividend of $1,727,000. Depreciation for the year was $858,000. Calculate the ratios for the Axtel Company. Assume Axtel had leasing costs of $7,267,000 and amortization of $1,416,000 in 20X1, and had 1268000 shares of stock outstanding that were valued at $28.75 per share at year end. The firm must also make principal repayments of $1,012,000 on its outstanding debt this year. Assume 360 days in a year. Round your answers to two decimal places.
| Current Ratio | fill in the blank 1 |
| Quick Ratio | fill in the blank 2 |
| Average Collection Period (ACP) | fill in the blank 3days |
| Inventory Turnover (using COGS) | fill in the blank 4x |
| Inventory Turnover (using sales) | fill in the blank 5x |
| Fixed Asset Turnover | fill in the blank 6x |
| Total Asset Turnover | fill in the blank 7x |
| Debt Ratio | fill in the blank 8% |
| Debt to Equity Ratio | fill in the blank 9 |
| Times Interest Earned (TIE) | fill in the blank 10x |
| Cash Coverage | fill in the blank 11 |
| Fixed Charge Coverage | fill in the blank 12x |
| EBITDA Coverage | fill in the blank 13x |
| Return on Sales | fill in the blank 14% |
| Return on Assets | fill in the blank 15% |
| Return on Equity | fill in the blank 16% |
| Price Earnings Ratio (P/E) | fill in the blank 17 |
| Market to Book Value Ratio | fill in the blank 18 |
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started
Focus On Personal Finance
Authors: Jack Kapoor, Les Dlabay, Robert Hughes, Melissa Hart
6th Edition
125991965X, 978-1259919657
