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Question 6 (8 points). Assume that Beta Corp. has 50,000 shares outstanding at the end of 2021 and 2022. The stock sold for $120 and
Question 6 (8 points). Assume that Beta Corp. has 50,000 shares outstanding at the end of 2021 and 2022. The stock sold for $120 and $150 per share at the end of 2021 and 2022, respectively. Calculate financial ratios for Beta Corp. in 2021 and 2022 by filling in the following table (to get full marks, in each cell, please show your calculation). Given the industry average, make relevant rating for Beta Corp. by indicating whether a ratio is Good, Not Good, or Acceptable. Current ratio Quick ratio Cash ratio Total debt ratio Equity multiplier Times interest earned (TIE) ratio Inventory turnover Day's sales in inventory Receivables turnover Day's sales in receivables Total assets turnover Profit margin Return on assets (ROA) Return on equity (ROE) Price/Earnings ratio (P/E) Market-to-book ratio 2021 2022 Short-Term Solvency (Liquidity) Long-Term Solvency (Financial Leverage) Asset Management (Turnover) 2 Profitability Market Value Ratios Industry 1.15 0.5 0.2 0.35 1.54 4.25 4.6 79.35 12.5 30 0.71 17.06% 12.11% 18.65% 12.75 2.25 Rating
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