Question
Q No.1 The Balance Sheet and Income Statement Data for Galaxy Computer Co. is given below BALANCE SHEET Assets 2001 2000 Cash 7,282 9,000 Short
Q No.1
The Balance Sheet and Income Statement Data for Galaxy Computer Co. is given below
BALANCE SHEET | ||
Assets | 2001 | 2000 |
Cash | 7,282 | 9,000 |
Short term investment | 0 | 48,600 |
Acc. Receivable | 632,160 | 351,200 |
Inventories | 1,287,360 | 715,200 |
Total current assets | 1,926,802 | 1,124,000 |
Fixed Assets | ||
Plant & Equipment | 1,202,950 | 491,000 |
Less: Acc dep | 263,160 | 146,200 |
939,790 | 344,800 | |
Total assets | 2,866,592 | 1,468,800 |
Liabilities & Equities | ||
Current liability | ||
A/c Payable | 524,160 | 145,600 |
Notes payable | 720,000 | 200,000 |
Accruals | 489,600 | 136,000 |
total Current liability | 1,733,760 | 481,600 |
Long-term debt | 1,000,000 | 323,432 |
Common Stock | 460,000 | 460,000 |
Retained Earning | -327,168 | 203,768 |
1,132,832 | 987,200 | |
Total equities | 2,866,592 | 1,468,800 |
Income Statement | ||
Sales | 5,834,400 | 3,432,000 |
Cost of Goods Sold | 5,728,000 | 2,864,000 |
Other expense | 680,000 | 340,000 |
dep | 116,960 | 18,900 |
EBIT/ LOSS | -690,560 | 209,100 |
Interest expense | 176,000 | 62,500 |
EBT/ LOSS | -866,560 | 146,600 |
tax | -346624 | 58640 |
net income/loss | -519,936 | 87,960 |
Required:
- Compute at least two ratios in each area (numbered 1 to 6 below) for both years. (Note: Do not take average of two years to calculate any formula, work on individual year figure for all calculation. For example, do not take average inventory or average receivable) (3 Marks)
- Liquidity
- Profitability
- Leverage
- Efficiency ratio/Asset Activity
- Coverage ratio
- Market ratio
- Based on your calculations in part a, interpret and give your comments about the companys liquidity, profitability, and solvency (2 Marks).
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