Question
Problem 6-9 Consider the current and pro forma financial statements that follow: 2015 2016 Sales 200 220 Variable Costs 100 110 Fixed Costs 80 80
Problem 6-9 | |||
Consider the current and pro forma financial statements that follow: | |||
2015 | 2016 | ||
Sales | 200 | 220 | |
Variable Costs | 100 | 110 | |
Fixed Costs | 80 | 80 | |
Net Income | 20 | 30 | |
Dividends | 10 | 22 | |
Current assets | 120 | 132 | |
Fixed Assets | 200 | 200 | |
Total Assets | 320 | 332 | |
Current Liabilities | 40 | 44 | |
Long-Term Debt | 40 | 40 | |
Common Stock | 40 | 40 | |
Retained Earnings | 200 | 208 | |
Total Liabilities and Equity | 320 | 332 | |
AFN = 0 | |||
Compute the following ratios for 2015 and 2016 (PLEASE SHOW WORK!) | |||
2015 | 2016 | ||
Curret Ratio | |||
Debt to Assets Ratio | |||
Sales to Assests Ratio | |||
Net Profit Margin | |||
Return on Assets | |||
Return on Equity | |||
Comments on any trends revealed by your ratio analysis. |
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