Solve for EACH of the SUNY Products financial ratios below and analyze in writing after calculation (5 pts ea).
Using the 2018 income statement and balance sheet of SUNY Products Inc
[1] Compute its financial ratios.
[2] Describe How is the firm doing relative to its industry in the areas of liquidity, asset management, leverage, and profitability?
021 Financial Ratios FIN 302 2018 NAME: Revenue SUNY Products Incorporated Common Size Income Statement for the year ended 31st Dec. 2018 (000s) $1,175,000 Cost of goods sold $850,000 $325,000 100.00% 72.3496 Gross Profit 27.66% Operating expenses 6.3896 Selling, general & administrative expenses R&D Depreciation Operating Income Other Income EBIT $75,000 $5,000 $18,500 $226,500 $2,500 $229,000 $2,975 $226,025 $50,000 $176,025 16,740 $3.03 0.4396 1.5796 19.2896 0.2196 19.499 0.2596 19.2496 4,2696 14.9896 Interest Expense Taxable income Taxes Net Income Shares Outstanding ('000s) EPS SUNY Products cost of goods sold is 76.8% of its revenue. Its gross margin is 23.2%, while its net profit martinis 5.396. It would be useful to compare these key cost and profit ratios over time and against a suitable benchmark so as to get a better idea of the firm's overall performance. General Paste Format Painter Es Merge & Center S609 Conditior Formattin Alignment Financial Ratios - S SUNY Products Inc. Balance Sheet as of year ended 31st December 2018 (200) Current Assets MT Cash Accts. Rec. Inventory Other Current Total Current L-TInv. PP&E Goodwill Other Assets Liabilities: Current Liabilities $7,336 Accounts Payable $45,000 Short Term Debt $45,000 TOTAL Current Liab. $12,000 Long Term Debt $ 109,336 Other Liabilities $25,340 Total Liabilities $225,000 Owner's Equity $30,000 Common Stock $14,000 Retained Earnings Total OE S403,676 Total Liab. And OE $62,000 $1,500 $63,500 $75,000 $15,000 $153,500 $189,676 $60,500 $250,176 $403,676 Total Assets SUNY Products debt position seems to be moderate with less than 40% debt relative to total assets. Their total current assets are about double their total current liabilities. We would need to compare these figures with either an industry benchmark or with a competitor's ratios to get a better feel for their overall asset and liability positions. r Copy Format Painter Clipboard Calibri - 14 BUE Wrap Text EFE E Merge & Center Alignment General | $ % . Conditional Formatting Font Number G13 OX EN 1 Task a Solve for EACH of the SUNY Products financial ratios below and analyze in writing after calculation (5 pts ea). Using the 2018 income statement and balance sheet of SUNY Products Inc (1) Compute its financial ratios. [2] Describe How is the firm doing relative to its industry in the areas of liquidity, asset management, leverage, and profitability? Ratio Industry Average SUNY Products - 4 points Current Ratio Quick Ratio ACID Test Ratio) +4 points +4 points 4 points) + 4 points + 4 points) + 4 points + 4 points + 4 points Cash Ratio Debt Ratio Cash Coverage Day's Sales in Receivables Total Asset Turnover Inventory Turnover Day's Sales in Inventory Receivables Turnover Profit Margin Return on Assets Return on Equity EL CANSA 888 1 Taskb ANALYSIS: LIQUIDITY: Liquidity ratios are below the industry average indicating that they might need to look into their management of current assets and liabilities 1 Taskb ANALYSIS: LIQUIDITY: Liquidity ratios are below the industry average indicating that they might need to look into their managementof current assets and liabilities. LEVERAGE: + 4 points) ASSEST MANAGEMENT: (+4 points) $62,000 $1,500 $63,500 $75,000 $15,000 $153,500 PROFITABILITY: SUNY Products has a good control on cost of goods sold. Its net profit margin is better than the industry and so isits ROA. The companys is also returning a higher rate to the shareholders on average, primarily due to the higher debt levels. $189,676 $60,500 $250,176 $403,676 A hout Problem 5 Financial Ratios Enter o Type here to search
