Question
Use information below for questions 7-10 below. Carolina, Inc. Balance Sheet Year 2022 2021 Assets Cash 384 249.7 Receivables 364.5 367.5 Inventories 1070.4 1086.3 Total
Use information below for questions 7-10 below.
Carolina, Inc. Balance Sheet
Year | 2022 | 2021 |
Assets |
|
|
Cash | 384 | 249.7 |
Receivables | 364.5 | 367.5 |
Inventories | 1070.4 | 1086.3 |
Total CA | 1818.9 | 1703.5 |
|
|
|
Fixed Assets | 7738.8 | 7771.7 |
|
|
|
Total Assets | 9557.7 | 9475.2 |
|
|
|
Liabilities and Equity |
|
|
Payables | 387.2 | 357.6 |
Other | 286.5 | 319.3 |
Total CL | 673.7 | 676.9 |
|
|
|
LT Debt | 2084.9 | 2120.5 |
Other LT Liabilities | 1426.2 | 1414.4 |
Total LT Liabilities | 3511.1 | 3534.9 |
|
|
|
Total Liabilities | 4184.8 | 4211.8 |
|
|
|
Common Stock | 3700 | 3700 |
Retained Earnings | 1672.9 | 1563.4 |
Total Equity | 5372.9 | 5263.4 |
|
|
|
Total Liabilities and Equity | 9557.7 | 9475.2 |
Carolina Inc. Income Statement
Year | 2022 | 2021 |
Total Revenue | 6324.6 | 5925.8 |
|
|
|
CoGS | 4047.9 | 3830.6 |
Fixed Costs | 1003.3 | 912.7 |
Depreciation | 180.8 | 192.9 |
|
|
|
Operating Income | 1092.6 | 989.6 |
|
|
|
Interest | 255.2 | 250.8 |
Income Tax | 167.2 | 176.4 |
|
|
|
Net Income | 670.2 | 562.4 |
- Calculate selected ratios for Carolina (for Year 2022 only) in the table below:
Briefly comment on key aspects of Carolinas financial performance vs. its competition. Which area(s) may need to be substantially improved and why?
| Carolina | Industry Average |
Current Ratio |
| 1.38 |
Total Debt |
| 42.2% |
TA Turnover |
| 0.70 |
ROA |
| 12.5% |
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