Question
QUESTION 1 The Garvey Company has the following financial statements. Garvey Company Balance Sheet For the period ended 12/31/X1 ($000) ASSETS 12/31/X0 12/31/X1 Cash $
QUESTION 1
- The Garvey Company has the following financial statements.
Garvey Company | ||||||
Balance Sheet | ||||||
For the period ended 12/31/X1 ($000) | ||||||
| ASSETS |
| ||||
| 12/31/X0 |
| 12/31/X1 | |||
Cash |
| $ | 3547 |
| $ | 2855 |
Accounts receivable |
|
| 6579 |
|
| 5217 |
Inventory |
|
| 2573 |
|
| 3220 |
CURRENT ASSETS |
| $ | 12699 |
| $ | 11292 |
|
|
|
|
|
|
|
Fixed assets |
|
|
|
|
|
|
Gross |
| $ | 22478 |
| $ | 24360 |
Accumulated deprec. |
|
| (12017) |
|
| (12927) |
Net |
| $ | 10461 |
| $ | 11433 |
|
|
|
|
|
|
|
TOTAL ASSETS |
| $ | 23160 |
| $ | 22725 |
|
|
|
|
|
|
|
| LIABILITIES |
| ||||
Accounts payable |
| $ | 1577 |
| $ | 1710 |
Accruals |
|
| 233 |
|
| 380 |
CURRENT LIABILITIES |
| $ | 1810 |
| $ | 2090 |
|
|
|
|
|
|
|
Long-term debt |
| $ | 7112 |
| $ | 6002 |
Equity |
|
| 14238 |
|
| 14633 |
TOTAL CAPITAL |
| $ | 21350 |
| $ | 20635 |
|
|
|
|
|
|
|
TOTAL LIABILITIES AND EQUITY |
| $ | 23160 |
| $ | 22725 |
Garvey Company | |||
Income Statement | |||
For the period ended 12/31/X1 | |||
($000) | |||
Sales |
| $ | 36233 |
COGS |
|
| 20315 |
Gross margin |
| $ | 15918 |
Expense |
| $ | 10478 |
EBIT |
| $ | 5440 |
Interest |
|
| 713 |
EBT |
| $ | 4727 |
Tax |
|
| 1605 |
Net income |
| $ | 3122 |
- In addition, Garvey retired stock for $1,000,000 and paid a dividend of $1,727,000. Depreciation for the year was $910,000. Calculate the ratios for the Garvey Company. Assume Garvey 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 | x |
Quick Ratio | x |
Average Collection Period (ACP) | days |
Inventory Turnover (using COGS) | x |
Inventory Turnover (using sales) | x |
Fixed Asset Turnover | x |
Total Asset Turnover | x |
Debt Ratio | % |
Debt to Equity Ratio | x |
Times Interest Earned (TIE) | x |
Cash Coverage | x |
Fixed Charge Coverage | x |
EBITDA Coverage | x |
Return on Sales | % |
Return on Assets | % |
Return on Equity | % |
Price Earnings Ratio (P/E) | x |
Market to Book Value Ratio | x |
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