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Read the financial statement of Bahrain Distributors below and provide what are required. Requirements; Using Bahrain Distributors financial statements (shown below), answer the following questions.
Read the financial statement of Bahrain Distributors below and provide what are required.
Requirements;
- Using Bahrain Distributors financial statements (shown below), answer the following questions. Compute for the companys 2017 and 2018 financial ratios (3 marks for the process, 2 marks for the correct answer)
- Current Ratio
- Quick Ratio
- Cash Ratio
- Debt Ratio
- Net Profit Margin
- Earnings per share
- Return on Total Asset
- Return on Equity
2018 | 2017 | |||
sales | $11,000 | $10,000 | ||
Operation costs excluding depreciation | 9360 | 8500 | ||
depreciation | 380 | 360 | ||
Earnings before interest and taxes | 1260 | 1140 | ||
Less interest | 120 | 100 | ||
Earning before taxes | 1140 | 1040 | ||
Taxes (40%) | 456 | 416 | ||
Net income avaible to common stockholders | 684 | 624 | ||
Common dividends | 220 | 200 | ||
2018 | 2017 | |||
Assets | ||||
Cash | $550 | $500 | ||
Short-team investments | 110 | 100 | ||
Accounts receivable | 2750 | 2500 | ||
Inventories | 1650 | 1500 | ||
Total current asssets | 5060 | 4600 | ||
Net plant and equipment | 3850 | 3500 | ||
Total assets | 8910 | 8100 | ||
2018 | 2017 | |||
Liabilities and Equity | ||||
Accounts payable | $1,100 | $1,000 | ||
Accruals | 550 | 500 | ||
Notes payable | 384 | 200 | ||
Total current liabilities | 2034 | 1700 | ||
Long -team debt | 1100 | 1000 | ||
Total liabilities | 3134 | 2700 | ||
Common stock | 4312 | 4400 | ||
Retained earnings | 1464 | 1000 | ||
Total common equity | 5776 | 5400 | ||
Total liabilities and equity | 8910 | 8100 |
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