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Sales 1,067,500 Cost of goods sold 1,392,500 Selling, general and administrative 145,000 Earnings before interest and taxes (EBIT) 70,000 Federal and state income taxes (40%)
Sales | 1,067,500 |
Cost of goods sold | 1,392,500 |
Selling, general and administrative | 145,000 |
Earnings before interest and taxes (EBIT) | 70,000 |
Federal and state income taxes (40%) | 18,200 |
Net income | 27,300 |
HH Company Balance Sheet as of December 31, 20XX
Assets | 80,500 | Accounts Payable | 132,000 |
Accounts Receivable | 334,500 | Current portion of debt | 84,000 |
Inventories | 240,000 | Other current liabilities | 114,000 |
Total current assets | 655,000 | Total current liabilities | 330,000 |
Net fixed assets | 292,500 | Long-term debt | 256,500 |
Total assets | 947,500 | Total liabilities | 586,500 |
|
| Common equity | 361,000 |
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| Total Liabilities & Equity | 947,500 |
1. Calculate the indicated ratios for HH.
Company Averages | Industry Averages | |
Current Ratio | 2.2 | |
Days sales outstanding (based on 365-day year) | 36 days | |
Inventory turnover | 6.7 | |
Fixed asset turnover | 12.1 | |
Total assets turnover | 3.00 | |
Return on sales | 1.20% | |
Return on assets | 3.60% | |
Return on equity | 9.00% | |
Debt ratio | 55% |
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