Question
The following financial statements apply to Franklin Company: Revenues Year 4 Year 3 Net Sales 210,300 175,400 Other revenues 8,100 6,100 Total revenues 218,400 181,500
The following financial statements apply to Franklin Company:
Revenues | Year 4 | Year 3 |
Net Sales | 210,300 | 175,400 |
Other revenues | 8,100 | 6,100 |
Total revenues | 218,400 | 181,500 |
Expenses |
|
|
Cost of goods sold | 125,600 | 101,600 |
Selling expenses | 20,300 | 18,300 |
General and administrative expenses | 9,900 | 8,900 |
Interest expense | 2,700 | 2,700 |
Income tax expense | 20,000 | 16,900 |
Total expenses | 178,500 | 148,400 |
Net income | 39,900 | 33,100 |
Assets |
|
|
Current assets |
|
|
Cash | 5,400 | 6,000 |
Marketable securities | 1,900 | 1,900 |
Accounts receivable | 36,200 | 30,500 |
Inventories | 100,600 | 94,700 |
Prepaid expenses | 4,100 | 3,100 |
Total current assets | 148,200 | 136,200 |
Plant and equipment (net) | 106,900 | 106,900 |
Intangibles | 20,500 | 0 |
Total assets | 275,600 | 243,100 |
Liabilities and Stockholders' Equity |
|
|
Liabilities |
|
|
Current liabilities |
|
|
Accounts payable | 39,200 | 54,100 |
Other | 16,400 | 15,700 |
Total current liabilities | 55,600 | 69,800 |
bonds payable | 65,900 | 66,900 |
Total liabilities | 121,500 | 136,700 |
Stockholders' equity |
|
|
common stock (47,000) | 113,200 | 113,200 |
Retained earnings | 40,900 | -6,800 |
Total stockholders' equity | 154,100 | 106,400 |
Total liabilities and stockholders' equity | 275,600 | 243,100 |
Calculate the following ratios for Year 3 and Year 4. Since Year 2 numbers are not presented do not use averages when calculating the ratios for Year 3. Instead, use the number presented on the Year 3 balance sheet. (round you answers to 2 decimal places except for n round your answer to the nearest whole percent)
|
| Year 4 |
| Year 3 |
|
a. | Net margin |
| % |
| % |
b. | Return on investment |
| % |
| % |
c. | Return on equity |
| % |
| % |
d. | Earnings per share |
|
|
|
|
e. | Price-earnings ratio |
| times |
| times |
f. | Book value |
|
|
|
|
g. | Interest earned |
| times |
| times |
h. | Working capital |
|
|
|
|
i. | Current ratio |
|
|
|
|
j. | Quick (acid test) ratio |
|
|
|
|
k. | Accounts receivable turnover |
| times |
| times |
l. | Inventory turnover |
| times |
| times |
m. | Dept-to-equity ratio |
|
|
|
|
n. | Dept-to-assests ratio |
| % |
| % |
Need help with the chart labeled a-n. Thank you!
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started