Section 1: Using the Data from "19x9" column calculate the following ratios, explain what each one means, and show what formula you used. ROE Current ratio Debt to Equity Gross Profit Margin Create a common size balance sheet for the Income Statement only, down to Net Income, comparing the two years worth of data (19x9 and 198). THe: Incone: Stutemint Dollars in Thousands, Except Fer-Share Amounts: The most important source of revenue is usually the tirst item on the incorne state. neent. It represents the primary source of revestue eamed by the campany from its customers for goods sold or services rendered. In Typical Manulacturing's income statement, it is shown as "net sales." The "net sales" item includes the amount reported after taking into consideration retumed goods and allowances for price. reductions or discounts: By comparing net salus between 199 and 19X8, we see that salcs increased in XXXX. 33 Net sales $765,050 In a manutactoring establishment cost of sales represents all the costs the company incurs to purchase and comvert taw materi. als into the finished products that it sells. These costs are commonly krown as prod. uct costs. "Product costs" are thove coss that can be identidied with the purchase or mansacture of goods made available for sale. There are three busic components of product cost: (1) Direct materials, (2) direct labor 1 Cash and cash equivalents $19,500 in other than a forced liquidation.J (Dollars in Thousands, Excegst Per-Share Amounts) December 31 Assets \begin{tabular}{rr} \multicolumn{2}{c}{ December 31} \\ \hline 199 & 198 \end{tabular} Current Assets: 1 Cash and cash equivalents 2 Marketable securities 3 Accounis receivable - net of allowance for doubtful accounts 4 inventories 5 Prepaid expenses and other current assets 6 Total Current Assets 7 Total Property, plant and equipment 5 Less: accumulated depreciation 9 Net Property, Plant and Equipment Other Assets: 10 Intangibles igoodwill, patents)net of accumulated amortization 11 Investment securities, at cost Total Other Assets 12 Total Assets \begin{tabular}{rr} $19,500 & $15,000 \\ 46,300 & 32,000 \\ 156,000 & 145,000 \\ 180,000 & 185,000 \\ 4,000 & 380,0003,000 \\ \hline 405,800 & 346,60097,000 \\ \hline 385,000 & 2,000249,600 \\ \hline 260,000 & \\ \hline 1,950 & 2,000 \\ \hline 2,250 & $631,600 \\ \hline 668,050 & \end{tabular} 9 Section 2: Using the Data from "19x8" column calculate the following ratios, explain what each one means, and show what formula you used. ROE Current ratio Debt to Equity Gross Profit Margin Create a common size balance sheet for the Income Statement only, down to Net Income, comparing the two years worth of data (19x9 and 19x8). Both Sections: Post your answers in an Excel file. Use the calculation/formula capabilities of Excel. Make your answers easy to read and follow by using color or box frames. Make your explanations understandable to the manager who does not have as much financial knowledge as you. THE Bu.ANCE SHEET Doilars in Thounande Excopt He-Share Anoumbs: Liabilities and Shareholders' Equity tiabilities: Current tiabilities: 13 Accounts paryable 14 Notes payable 15 Accrued expenses 16 income taxos parvable 17 Other liabilities 18. Cunent portion of long-lenm debt 19 Total Current Liabilities Long-term Liabilities: 20 Deferred incone taus 219.12% debentures paryable 2010 22 Other long-tern dich 23 Total tiabilities Sharcholders' Equity: 24 Preicmed stock 53.83 cumulative, $100 par value; authorized, issued and outganding: 60,000 shares 25 Common stock, \$5,00 par value. authoriacd: 20,000,000 shares: issued and outcanding; 19915,000,0000 shaies. 19814,500,000 shams 26 Additional paid-in capial 27 Retained eamings 25 Foreign currency translation adjustments (net ax) 29 Unreslized gain on availablectorsale securities inet of taves) 30 Less: Treasury stock at cost (19x9 and 19081,000 shares? 31 Total Sharehoiders' Equity 32 Tota! Liabilities and Shareholder' Equity $60,000 51,000 30,000 17,000 12,000 176,0006,000 16,000130,000322,000 6.000 73,000 20.000 249,000 1,000 50 (5.000) 346,050 557.000 61,000 36.000 15,000 12000 181,000 9,000130,0006,000326,000 6,000 72.500 13.500 219.600 (1,000) 50346,05015,000)$6688,050$05,6005,000$631,600 Section 1: Using the Data from "19x9" column calculate the following ratios, explain what each one means, and show what formula you used. ROE Current ratio Debt to Equity Gross Profit Margin Create a common size balance sheet for the Income Statement only, down to Net Income, comparing the two years worth of data (19x9 and 198). THe: Incone: Stutemint Dollars in Thousands, Except Fer-Share Amounts: The most important source of revenue is usually the tirst item on the incorne state. neent. It represents the primary source of revestue eamed by the campany from its customers for goods sold or services rendered. In Typical Manulacturing's income statement, it is shown as "net sales." The "net sales" item includes the amount reported after taking into consideration retumed goods and allowances for price. reductions or discounts: By comparing net salus between 199 and 19X8, we see that salcs increased in XXXX. 33 Net sales $765,050 In a manutactoring establishment cost of sales represents all the costs the company incurs to purchase and comvert taw materi. als into the finished products that it sells. These costs are commonly krown as prod. uct costs. "Product costs" are thove coss that can be identidied with the purchase or mansacture of goods made available for sale. There are three busic components of product cost: (1) Direct materials, (2) direct labor 1 Cash and cash equivalents $19,500 in other than a forced liquidation.J (Dollars in Thousands, Excegst Per-Share Amounts) December 31 Assets \begin{tabular}{rr} \multicolumn{2}{c}{ December 31} \\ \hline 199 & 198 \end{tabular} Current Assets: 1 Cash and cash equivalents 2 Marketable securities 3 Accounis receivable - net of allowance for doubtful accounts 4 inventories 5 Prepaid expenses and other current assets 6 Total Current Assets 7 Total Property, plant and equipment 5 Less: accumulated depreciation 9 Net Property, Plant and Equipment Other Assets: 10 Intangibles igoodwill, patents)net of accumulated amortization 11 Investment securities, at cost Total Other Assets 12 Total Assets \begin{tabular}{rr} $19,500 & $15,000 \\ 46,300 & 32,000 \\ 156,000 & 145,000 \\ 180,000 & 185,000 \\ 4,000 & 380,0003,000 \\ \hline 405,800 & 346,60097,000 \\ \hline 385,000 & 2,000249,600 \\ \hline 260,000 & \\ \hline 1,950 & 2,000 \\ \hline 2,250 & $631,600 \\ \hline 668,050 & \end{tabular} 9 Section 2: Using the Data from "19x8" column calculate the following ratios, explain what each one means, and show what formula you used. ROE Current ratio Debt to Equity Gross Profit Margin Create a common size balance sheet for the Income Statement only, down to Net Income, comparing the two years worth of data (19x9 and 19x8). Both Sections: Post your answers in an Excel file. Use the calculation/formula capabilities of Excel. Make your answers easy to read and follow by using color or box frames. Make your explanations understandable to the manager who does not have as much financial knowledge as you. THE Bu.ANCE SHEET Doilars in Thounande Excopt He-Share Anoumbs: Liabilities and Shareholders' Equity tiabilities: Current tiabilities: 13 Accounts paryable 14 Notes payable 15 Accrued expenses 16 income taxos parvable 17 Other liabilities 18. Cunent portion of long-lenm debt 19 Total Current Liabilities Long-term Liabilities: 20 Deferred incone taus 219.12% debentures paryable 2010 22 Other long-tern dich 23 Total tiabilities Sharcholders' Equity: 24 Preicmed stock 53.83 cumulative, $100 par value; authorized, issued and outganding: 60,000 shares 25 Common stock, \$5,00 par value. authoriacd: 20,000,000 shares: issued and outcanding; 19915,000,0000 shaies. 19814,500,000 shams 26 Additional paid-in capial 27 Retained eamings 25 Foreign currency translation adjustments (net ax) 29 Unreslized gain on availablectorsale securities inet of taves) 30 Less: Treasury stock at cost (19x9 and 19081,000 shares? 31 Total Sharehoiders' Equity 32 Tota! Liabilities and Shareholder' Equity $60,000 51,000 30,000 17,000 12,000 176,0006,000 16,000130,000322,000 6.000 73,000 20.000 249,000 1,000 50 (5.000) 346,050 557.000 61,000 36.000 15,000 12000 181,000 9,000130,0006,000326,000 6,000 72.500 13.500 219.600 (1,000) 50346,05015,000)$6688,050$05,6005,000$631,600