ratios

financial starements

it is complete, i just provide the financial statements you ask me for

RATIOS 1. Based on the Financial Statements for Apple, Inc. provided, compute the following Ratios: 1. Current Ratio: 2. Acid-test (quick) ratio 3. Accounts receivable tumover ratio 4. Inventory tumover ratio 5. Profit margin ratio 6. Asset turnover ratio 7. Return on asset ratio 8. Return on common stockholders' equity ratio 9. Earnings per share (EPS) ratio 10. Price-earnings (P-E) ratio 7. Return on asset ratio 8. Return on common stockholders equity ratio 9. Earnings per share (EPS) ratio 10. Price-earnings (P-E) ratio 11. Payout ratio 12. Debt to assets ratio 13. Times interest eamed ratio 14. Based on the ratios calculated above for Apple Inc.. when comparing them to the ratios in your book for Quality Department Store, which company would you invest in and why? 15. What are the three categories of ratios? 1. 2. 3 A single ratio by itself is not very meaningful The discussion of ratios include the following types of comparisons. 1. Intracompany comparisons for two years for Quality Department Store Industry average comparisons based on median ratios for department stores 3. Intercompany comparisons based on Macy's, Inc. as Quality Department Store's principal competitor. 2. LO 2 Ratio Analysis Measure the short-term ability of the company to pay its maturing obligations and to meet unexpected needs for cash. Short-term creditors such as bankers and suppliers are particularly interested in assessing liquidity. Ratios include the current ratio, the acid-test ratio, accounts receivable turnover, and inventory turnover. LO 2 QUALITY DEPARTMENT STORE INC. Coaded legume Streets 2013 2012 Sole 2013 $2.195.000 $1.000 QUALITY DEPARTMENT STORE INC Kalbastral 2012 500 5.00 Haute 2.100 17:00 w 31 ... tie Cli 34.000 Le 17 2017 1.000 BI 117,600 L Gospel 10400 100 Toper . Other TO GLA Current Ratio = Current Assets Current Liabilities Ratio Analysis 1. CURRENT RATIO Current Ratio Current Assets Current Liabilities Quality Department Store 2012 $1,020,000 -2.961 $945.000 $344.500 5303.000 Industry avere Macy's Inc 1.70:1 152-1 Ratio of 2.96: I means that for every dollar of current liabilities, Quality has $2.96 of current assets 140 LO2 Investor Insight How to Manage the Current Ratio The apparent simplicity of the current ratio can have real-world limitations because adding equal amounts to both the numerator and the denominator causes the ratio to decrease Assume, for example, that a company has $2,000,000 of current assets and $1,000,000 of current liabilities. Thus, its current ratio is 21. F the company purchases $1,000,000 of inventory on account, it will have $3,000,000 of current assets and $2,000,000 of current liabilities. Its current ratio therefore decreases to 1.3:1. 11, instead, the company pays off $500,000 of its current liabilities, it will have $1,500,000 of current assets and $500,000 of current liabilities. Its current ratio then increases to 3:1. Thus, any trend analysis should be done with care because the ratio is susceptible to quick changes and is easily influenced by management LO 2 Ratio Analysis 2. ACID-TEST RATIO QUALITY DEPARTMENT STORE INC Balance Sheet (partial Currentes Cash Short-term investment Accounts receivable (net) Inventory Prepaid expenses Total cum $100,000 20,000 230,000 620.000 5153,000 70,000 180,000 500,000 40.000 $945.000 SLOMAR Ratio Analysis 2. ACID-TEST RATIO QUALITY DEPARTMENT STORE INC Balance Sheet (partial Cure arts Cash $ 100,000 $155.000 Short-term investments 20.000 20.000 Accounts receivable (net) 230.000 180.000 Inventory 20.000 500 000 Prepaid expenses 50.000 20.000 Totalcumentat 51.020.000 $945.000 Almance for doubtful accounts is 510.000 at the end oleach year LO QUALITY DEPARTMENT STORE INC. QUALITY DEPARTMENT STORE INC. 2011 82.500 31.5.000 Dr. La 000 Acid-Test Ratio - Cash + Short-Term Investments + Accounts Receivable (Net) Current Liabilities LO Ratio Analysis 2. ACID-TEST RATIO Acid-Test Ratio = Cash + Short-Term Investments + Accounts Receivable (Net) Current Liabilities Quality Department Stor 2013 2011 $100,000 $20,000+$230,000 $155.000 $70,000+ $150.000 1.021 $344.500 $363.000 Industry Ratio Analysis 2. ACID-TEST RATIO Acid-Test Ratio - Cash + Short-Term Investments + Accounts Receivable (Net) Current Liabilities Quality Department Store 2013 $100,000 $20,000+ $230,000 $155.000 $70.000 $150,000 -1.02.1 -1 341 $344,500 S0000 Industry average MacyInc 0.70:1 3.4.1 Acid-test ratio measures immediate liquidity LO QUALITY DEPARTMENT STORE INC. QUALITY DEPARTMENT STORE INC. I Genes 2 - Accounts Receivable Turnover = Net Credit Sales Average Net Accounts Receivable LO Ratio Analysis 3. ACCOUNTS RECEIVABLE TURNOVER Accounts Receivable Turnover - Net Credit Sales Average Net Accounts Receivable Quality Department Store 2013 2013 $2,097,000 - 10.2 times $1.837000 $180,000 - $230,000 $200,000 $180.000 Industry average Ratio Analysis 3. ACCOUNTS RECEIVABLE TURNOVER Net Credit Sales Accounts Receivable Turnover Average Net Accounts Receivable Quality Department Store 2013 $2,097,000 51.837000 15180,000 - $230,000 102 times 15200,000 - $150,000 BUS ladustry average 46.4 times Macy's, Inc 1 times Measures the number of times, on average, the company collects receivables during the period. LO2 Ratio Analysis 3. ACCOUNTS RECEIVABLE TURNOVER $2,097,000 = 10.2 times (S180,000 + $230,000)/2 A variant of the accounts receivable tumover ratio is to convert it to an average collection period in terms of days. 365 days / 10.2 times every 35.78 days Accounts receivable are collected on average every 36 days LO 2 QUALITY DEPARTMENT STORE INC. QUALITY DEPARTMENT STORE INC. Code Ferranted Gnom what A. : ASSE RE 1331 DEBE Cost of Goods Sold Inventory Turnover = wegentory Accounts receivable are collected on average every 36 days LO2 QUALITY DEPARTMENT STORE INC. Balance Shell QUALITY DEPARTMENT STORE INC. Curated tanah we are dedi 20 2011 218 . 121 2 Cendawa 125,00 11 5.600 tul Sem 2510 1942 357000 490,00 2S TOR 100 ST. Income hand added Inventory Turnover Cost of Goods Sold Average Inventory LO 2 Ratio Analysis 4. INVENTORY TURNOVER Inventory Turnover Cost of Goods Sold Average Inventory Quality Department Store 2013 $1,281,000 $1.140,000 $500,000$620,000 $450,000 $500,000 2.4 times Industry average 4.3 times Mack Inc 3.1 times Measures the number of times, on average, the inventory is sold during the period. LO 2 Ratio Analysis + 59 Inventory Turnover = Cost of Goods Sold Average Inventory Quality Department Store 2012 $1,281,000 51.140,000 $500.000 $620.000 15450.000 - 5500.000 Industry average 4.3 times Macyk, Inc. Measures the number of times, on average, the inventory is sold during the period LO2 Ratio Analysis 4. INVENTORY TURNOVER $1,281,000 ($500,000 + $620,000)/2 2.3 times A variant of inventory turnover is the days in inventory 365 days / 2.3 times every 159 days Inventory turnover ratios vary considerably among industries. LO2 Ratio Analysis Measure the income or operating success of a company for a given period of time Income affects the company's ability to obtain debt and equity financing, their liquidity position, and their ability to grow. Ratios include the profit margin, asset turnover, return on assets, return on common stockholders' equity, earnings per share, price-earnings ratio, and payout ratio. 14 LO Ratio Analysis Measure the income or operating success of a company for a given period of time Income affects the company's ability to obtain debt and equity financing their liquidity position, and their ability to grow. Ratios include the profit margin, asset turnover, return on assets, return on common stockholders' equity, earnings per share, price-earnings ratio, and payout ratio. LO 2 QUALITY DEPARTMENT STORE INC Custamed 33 QUALITY DEPARTMENT STORE INC. Condo Terbaar A . Net SU 300 11.08 11:58 BLAR. SO TIL w LAB 47 LL BE De Nowy Profit Margin = Net Income Net Sales Net LO Ratio Analysis 5. PROFIT MARGIN Profit Margin - Net Income Net Sales Quality Department Store 20 $263,800 S205.500 - 120 52,097,000 51,837000 Industry Magy, Inc A2 Appendix A foci Free CONSOLIDATED NEATEMENTS OF OPERATIONS Cere 10 Oder IN CONSOLIDARITATEMENTS OF COME INCO Illallele Appendix A Swine France et A-3 COLATE BALANCE SHEETS $ 5 Venda Long - + 63 3of 6 156 11 8821| / (=44387a1E a. al. 1 CONSOLIDATED STATEMENTS ORARLBERGERY 4 of 6 | 2011) - . - -- . 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