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The financial information for Roger Inc. is given below: a. Calculate the debt management and asset management ratios for Roger Inc. b. Outline Rogers strengths

The financial information for Roger Inc. is given below: a. Calculate the debt management and asset management ratios for Roger Inc. b. Outline Rogers strengths and weaknesses as revealed by your analysis. You only have to focus on debt management and asset management areas of business performance. c. Calculate ROE using du-pont equation for the firm and Industry (make table). Conduct Du-pont analysis by comparing the ROE of firm with the industry

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Ratio Current Quick Days sales outstanding Inventory tumover Total assets turnover Profit margin ROA ROE Total debt/total assets Calculation is based on a day yo Industry Average 20x 13x 35.0 days 67x 30% 1.24 36% 9.0% 60.0% Balance Sheet as of December 31, 2008 (In Thousands) Cash $ 77,500 Accounts payable $129,000 Receivables 336,000 Notes payable 84,000 Inventories 2415.00 Other current liabilities 117000 Total current assets 5655,000 Total current liabilities 5330,000 Long term debt 256.500 Net fixed assets 292.500 Common equity 361,000 Total assets 5942.500 Total liabilities and equity $947.500 Income Statement for Year Ended December 31, 2008 (In Thousands Sales $1,607,500 Cost of goods sold Materials $ 717.000 Labor 453,000 Heat, light and power 68.000 Indirect labor 113,000 Depreciation 41,500 1,392,500 Gross profit $ 215,000 Selling expenses 115,000 General and administrative expenses Earnings before interest and taxes (EBIT) $70,000 Interest expense 24,500 Earnings before taxes (EBT) $ 45,500 Federal and state income taxes (40%) 18,200 Net income 27.300 Ratio Current Quick Days sales outstanding Inventory tumover Total assets turnover Profit margin ROA ROE Total debt/total assets Calculation is based on a day yo Industry Average 20x 13x 35.0 days 67x 30% 1.24 36% 9.0% 60.0% Balance Sheet as of December 31, 2008 (In Thousands) Cash $ 77,500 Accounts payable $129,000 Receivables 336,000 Notes payable 84,000 Inventories 2415.00 Other current liabilities 117000 Total current assets 5655,000 Total current liabilities 5330,000 Long term debt 256.500 Net fixed assets 292.500 Common equity 361,000 Total assets 5942.500 Total liabilities and equity $947.500 Income Statement for Year Ended December 31, 2008 (In Thousands Sales $1,607,500 Cost of goods sold Materials $ 717.000 Labor 453,000 Heat, light and power 68.000 Indirect labor 113,000 Depreciation 41,500 1,392,500 Gross profit $ 215,000 Selling expenses 115,000 General and administrative expenses Earnings before interest and taxes (EBIT) $70,000 Interest expense 24,500 Earnings before taxes (EBT) $ 45,500 Federal and state income taxes (40%) 18,200 Net income 27.300

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