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The following balance sheets and income statements are for ABC Co., a manufacturer of small electronic devices, including calculators, personal digital assistants and mp3 players.

The following balance sheets and income statements are for ABC Co., a manufacturer of small electronic devices, including calculators, personal digital assistants and mp3 players. Data are shown in thousands except items listed under additional information (outstanding shares and preferred dividends).

Use the information to calculate the following information:

a.

Compute the rate of return on assets for ABC Co. for 2015. Compute the profit margin on ROA and asset turnover on ROA. The income tax rate is 35%.

b.

Compute the accounts receivable turnover ratio for ABC Co. for 2015. All of the companys sales were made on account.

c.

Compute the inventory turnover ratio for ABC Co. for 2015.

d.

Compute the fixed assets turnover ratio for ABC Co. for 2015.

e.

Compute the rate of return on common shareholders equity for ABC Co. for 2015. Compute the profit margin for ROCE. The amount of preferred dividends paid each year appears after the income statement.

f.

Determine ABC Co. capital structure leverage for 2015.

g.

Compute ABC Co. earnings per share for 2015.

image text in transcribedimage text in transcribed

ASSETS (in thousands) 2015 2014 2013 S 875,650S 571,250$ 154,230 Fiscal year end Cash Marketable securities Receivables Inventories Other current assets Total current assets 6,560 771,580 1,320,150 249,000 3,222,940 775,250 1,254,600 231,200 2,832,300 902,000 1,418,500 229,900 2,704,630 Property, plant & equipment 1,118,750 1,100,300 1,122,400 Intangibles Deposits & other assets Total assets 263,050 184.500 241,000 168,250 215,600 168,900

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