Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Ratio Analysis Compute the ratios below for Blue Bill Corporation based on the financial statements provided. Ending inventory was $1,237.6 for year 2010. After calculating

Ratio Analysis Compute the ratios below for Blue Bill Corporation based on the financial statements provided. Ending inventory was $1,237.6 for year 2010. After calculating the various ratios, analyze the overall financial health of Blue Bill Corporation. Values presented on the financial statements are in millions.

Blue Bill Corporation
Balance Sheet
December 31, 2011
Assets Liabilities and Shareholders' Equity
Current Assets Current liabilities
Cash and cash equivalents $ 483.2 Short-term debt $ 43.4
Receivables (net of allowance) 1,045.1 Long-term debt due within a year 151.6
Inventories 1,249.4 Accounts payable 1,007.7
Other current assets 273.5 Other accrued liabilities 972.7
Total current assets 3,051.2 Total current liabilities 2,175.4
Property, plan and equipment
Land 77.1 Long-term liabilities
Buildings 842.4 Long-term debt 4,559.4
Equipment 3,546.0 Deferred taxes 665.3
Less accumulated depreciation 2,373.7 Other long-term liabilities 784.2
Total property, plant and equipment 2,091.8 Total long-term liabilities 6,008.9
Other noncurrent assets 4,932.6 Shareholders' equity 1,891.3
Total assets $10,075.6 Total liabilities and shareholders' equity $10,075.6
Blue Bill Corporation
Income Statement
2011
Sales $10,495.0
Cost of products sold 6,700.5
Gross Profit 3,794.5
Selling and administrative expense 2,350.9
Operating income 1,443.6
Other income (18.3)
Earnings before interest and taxes 1,425.3
Interest expense 295.2
Taxes 247.8
Net income $ 882.3
Ratio analysis
Liquidity ratios:
Current ratio
Quick ratio
Activity ratios:
Inventory turnover
Receivables turnover
Days sales outstanding
Fixed asset turnover
Total asset turnover
Profitability ratios:
Gross profit margin
Operating profit margin
Net profit margin
Return on assets
Return on equity
Leverage ratios:
Debt / Net worth
Debt ratio
Coverage ratios:
Times-interest-earned

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Culture Audit In Financial Services Reporting On Behaviour To Conduct Regulators

Authors: Dr Roger Miles

1st Edition

1789667755, 978-1789667752

More Books

Students also viewed these Accounting questions