Selected Financial Ratios

Selected Financial Ratios 1. Compute and interpret financial ratios that managers use to assess liquidity, 2. Compute and interpret financial ratios that managers use for asset management purposes. 3. Compute and interpret financial ratios that managers use for debt management purposes. 5 ? X - 6 Sign In FILE A x . HOME INSERT Caibri B T U . Font Selected Financial Ratios - Excel PAGE LAYOUT FORMULAS DATA REVIEW VIEW A A % .A. Alignment Number Conditional Format as Cell - Formatting Table Styles Styles 10 . De Cells Editina Paste Clipboard AL I X Recent financial statements for Zimmer, Inc. are as follows: Zimmer Company Income Statement Last Year This Year $4.980.000 2.988.000 1 Recent financial statements for Zimmer, Inc. are as follows: Zimmer Company Comparative Balance Sheet This Year 5 Assets 6 Current assets: Cash 360,000 8 Marketable securities 220,000 9 Accounts receivable, net 775.000 10 Inventory 925.000 11 Other current assets 355000 12 Total current assets 2.635,000 13 Plant and equipment, net 1.975,000 14 Other assets 75,000 15 Total assets 4,685,000 1,992.000 S 310,000 Sales (all on account) 80,000 Cost of goods sold 700,000 Gross margin 750,000 Selling and administrative expenses 195,000 Operating expenses 2,035,000 Depreciation and amortization 1,800,000 General and administrative expenses 100,000 Total selling and administrative expenses $ 3,935,000 Net operating income 985 500 410500 150.000 1,546,000 446,000 Clipboard Styles AI X : Recent financial statements for Zimmer, Inc. are as follows: 2,400,000 C 1,843.400 Par value of common stock per share 2000 24 Total liabilities 25 Stockholders' equity: 26 Common stock 27 Retained earnings 28 Total stockholders' equity 29 Total liabilities and stockholders' equity Number of shares outstanding 1,150,000 1,135,000 2.285,000 4.685.000 1.150.000 941.600 2,091,600 3.995.000 $ $ 31 Required: 32 Compute the following ratios for the current year only: Gross margin percentage Current ratio (rounded to two decimal places) Acid-test ratio (rounded to two decimal places) Accounts receivable turnover (rounded to two decimal places) Average collection period (rounded to the nearest whole day) 38 Inventory turnover ratio (rounded to two decimal places) 39 Average sales period (rounded to the nearest whole day) 40 Debt-to-equity ratio (rounded to two decimal places) 41 Times interest earned (rounded to two decimal places) 42 Book value per share (rounded to two decimal places) 43 Earnings per share (rounded to two decimal places) 44 Dividend payout ratio (rounded to three decimal places) 45 Dividend yield ratio (rounded to three decimal places) 46 Price-earnings ratio (rounded to two decimal places) . ... Sheet1 ... + READY -- Attempt(s) + 100% Show Me Hint