SNIDER CORPORATION Balance Sheet December 31, 2010 Assets Current assets: Cash $ 55,600 Marketable securities 22,000 Accounts receivable (net) 198,000 Inventory 239,000 -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- Total current assets $ 514,600 Investments 62,400 Plant and equipment. 683,000 Less: Accumulated depreciation (216,000) Net plant and equipment 467,000 -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- Total assets $ 1,044,000 -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- Liabilities and Stockholders' Equity Current liabilities: Accounts payable $ 94,600 Notes payable 72,800 Accrued taxes 12,800 -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- Total current liabilities 180,200 Long-term liabilities: Bonds payable 150,400 -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- Total liabilities $ 330,600 Stockholders' equity Preferred stock, $50 par value 100,000 Common stock, $1 par value 80,000 Capital paid in excess of par 190,000 Retained earnings 343,400 -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- Total stockholders' equity 713,400 -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- Total liabilities and stockholders' equity $ 1,044,000 -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- SNIDER CORPORATION Income Statement For the Year Ending December 31, 2010 Sales (on credit) $ 2,009,000 Less: Cost of goods sold 1,354,000 -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- Gross profit 655,000 Less: Selling and administrative expenses 529,000 * -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- Operating profit (EBIT) 126,000 Less: Interest expense 26,800 -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- Earnings before taxes (EBT) 99,200 Less: Taxes 86,400 -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- Earnings after taxes (EAT) $ 12,800 -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- *Includes $37,000 in lease payments. Using the above financial statements for the Snider Corporation, calculate the following ratios. (Enter only numeric values rounded to 2 decimal places. Omit the "%" sign in your response.) (a) Profitability ratios Profitability ratios Profit margin % Return on assets (investment) % Return on equity % -------------------------------------------------------------------------------- (b) Assets utilization ratios Assets utilization ratios Receivable turnover Average collection period days Inventory turnover Fixed asset turnover Total asset turnover -------------------------------------------------------------------------------- (c) Liquidity ratios Liquidity ratios Current ratio Quick ratio -------------------------------------------------------------------------------- (d) Debt utilization ratios Debt utilization ratios Debt to total assets % Times interest earned Fixed charge coverage