The income statement and balance sheet for HOYT, Inc. are provided below. (Note that the reported figures are expressed in thousands of dollars). Current assets Cash Accounts receivable Inventory Total Fixed assets. Net plant and equipment Total assets HOYT, INC. Balance Sheets as of December 31, 2020 and 2021 (in 000s) 2020 2021 Assets $500 $1,000 500 900 440 660 $1,900 $2,100 $1,000 $1,200 $2,900 $3,300 2020 Liabilities and Owners' Equity Current liabilities Accounts payable Notes payable Total Long-term debt Owners' equity Common stock Accumulated retained earnings Total Equity Total liabilities and owners' equity 2021 $500 $ 800 900 700 $1,400 $1,500 $400 $ 600 $600 $ 624 500 576 $ 1,100 $1,200 $2,900 $3,300 HOYT, INC. 2021 Income Statement (in 000s) Sales Cost of goods sold Depreciation EBIT Interest paid Taxable income Taxes Net income Dividends Retained earnings $ 304 76 $ $ LA $ 1,700 1,030 100 570 89 481 101 380 Requirement #2: Use the ratios you calculated in Requirement #1 and the industry averages given in the table above to determine if HOYT, Inc. is "above average" or "below average" in each of the following areas of financial performance. Financial Leverage Asset Use Efficiency Operating Efficiency Liquidity Shareholder Return (Click to select) (Click to select) (Click to select) (Click to select) (Click to select) Requirement #3: Based on DuPont analysis, how would you explain the difference in the return on equity (ROE) for HOYT, Inc. vs. the industry as a whole in 2021 (i.e., why is the ROE for HOYT higher/lower than the ROE for the average firm in the industry)? I The income statement and balance sheet for HOYT, Inc. are provided below. (Note that the reported figures are expressed in thousands of dollars). Current assets Cash Accounts receivable Inventory Total Fixed assets Net plant and equipment Total assets HOYT, INC. Balance Sheets as of December 31, 2020 and 2021 (in 000s) 2020 2021 Assets $500 $1,000 500 440 900 660 $1,900 $2,100 $1,000 $1,200 $2,900 $3,300 2020 Liabilities and Owners' Equity Current liabilities Accounts payable Notes payable Total Long-term debt Owners' equity Common stock Accumulated retained earnings Total Equity Total liabilities and owners' equity 2021 $500 $ 800 900 700 $1,400 $1,500 $ 400 $ $ 600 $ 500 600 624 576 $1,100 $1,200 $2,900 $3,300 HOYT, INC. 2021 Income Statement (in 000s) Sales Cost of goods sold Depreciation EBIT Interest paid Taxable income Taxes Net income Dividends Retained earnings $ 304 76 $ $ tA $ $ tA 1,700 1,030 100 570 89 481 101 380 a. Current ratio b. Quick ratio c. Total asset turnover d. Inventory turnover e. Total debt ratio f. Equity Multiplier g. Times interest earned ratio h. Profit margin i. Return on assets j. Return on equity 2021 Financial Leverage Asset Use Efficiency Operating Efficiency Liquidity Shareholder Return 1.4000 times 0.9600 times 94.4706 times 1.5606 times 0.6364 times 2.7500 6.4045 times 22.35% % % Industry Average 1.2031 0.7814 0.5875 2.2791 Requirement #2: Use the ratios you calculated in Requirement #1 and the industry averages given in the table above to determine if HOYT, Inc. is "above average" or "below average" in each of the following areas of financial performance. 0.3654 1.5757 5.9117 27.01% 15.87% 25.00% (Click to select) (Click to select) (Click to select) (Click to select) (Click to select) Requirement #3: Based on DuPont analysis, how would you explain the difference in the return on equity (ROE) for HOYT, Inc. vs. the industry as a whole in 2021 (i.e., why is the ROE for HOYT higher/lower than the ROE for the average firm in the industry)
