Question
Use this chart to assist you. Industry averages are shown below for each ratio. Place your calculated ratio for Williams Outdoor Products in the appropriate
Use this chart to assist you. Industry averages are shown below for each ratio. Place your calculated ratio for Williams Outdoor Products in the appropriate spot below.
| Ratio | Calculation Williams Outdoor Products | Industry Average | Williams ratio is better or worse than industry average |
| Current Ratio | 2.55 | ||
| Quick Ratio | 1.00 | ||
| Accounts Receivable Turnover | 10.5 | ||
| Inventory Turnover | 5.61 | ||
| Asset Turnover | 1.48 | ||
| Profit Margin | .039 | ||
| Return on Common Stockholders Equity | .110 |
Williams Outdoor Products
Balance Sheet
December 31, 2018 and 2017
| 2018 | 2017 | ||
| Assets | |||
| Current Assets | |||
| Cash | $225,000 | $175,000 | |
| Short Term Investments | 250,000 | 150,000 | |
| Accounts Receivable (net) | 525,000 | 425,000 | |
| Inventories | 960,000 | 720,000 | |
| Prepaid Expenses | 40,000 | 30,000 | |
| Total Current Assets | 2,000,000 | 1,500,000 | |
| Long-term Investments | 275,000 | 250,000 | |
| Property, Plant and equipment (net) | 2,243,000 | 2,093,000 | |
| Total Assets | $4,518,000 | $3,843,000 | |
Williams Outdoor Products
Balance Sheet
December 31, 2018 and 2017
| 2018 | 2017 | |
| Liabilities | ||
| Current Liabilities | ||
| Accounts Payable | $780,000 | $700,000 |
| Wages payable | 70,000 | 50,000 |
| Total Current Liabilities | 850,000 | 750,000 |
| Long-Term Liabilities | ||
| Mortgage note payable, 10%, due 2031 | 820,000 | 410,000 |
| Bonds payable, 8%, due 2022 | 800,000 | 800,000 |
| Total Long-term liabilities | 1,620,000 | 1,210,000 |
| Total liabilities | 2,470,000 | 1,960,000 |
| Stockholders Equity | ||
| Common Stock, $5 | 1,000,000 | 1,000,000 |
| Retained Earnings | 1,048,000 | 883,000 |
| Total Stockholders equity | 2,048,000 | 1,883,000 |
| Total liabilities and Stockholders Equity | $4,518,000 | $3,843,000 |
Williams Outdoor Products
Income Statement
For the Years Ended December 31, 2018 and 2017
| 2018 | 2017 | |
| Sales | $5,600,000 | $5,125,000 |
| Sales returns and allowances | 150,000 | 125,000 |
| Net sales | 5,450,000 | 5,000,000 |
| Cost of goods sold | 3,706,000 | 3,400,000 |
| Gross profit | 1,744,000 | 1,600,000 |
| Operating expenses | ||
| Selling expenses | 708,500 | 650,000 |
| Administrative expenses | 507,500 | 325,000 |
| Total operating expenses | 1,216,000 | 975,000 |
| Income from operations | 528,000 | 625,000 |
| Other income and (expenses) | ||
| Interest income | 7,000 | 5,000 |
| Gain on sale of equipment | 0 | 20,000 |
| Interest expense | (150,000) | (105,000) |
| Income before income tax | 385,000 | 545,000 |
| Income taxes | 115,000 | 300,000 |
| Net income | $270,000 | $245,000 |
| Earnings per share (250,000 Shares) | ||
| Net income | $1.35 | $1.23 |
Williams Outdoor Products
Retained Earnings Statement
For the Years Ended December 31, 2018 and 2017
| 2018 | 2017 | |
| Retained Earnings, January 1 | $883,000 | $723,000 |
| Add net income for year | 270,000 | 245,000 |
| 1,153,000 | 968,000 | |
| Deduct Dividends | 105,000 | 85,000 |
| Retained Earnings, December 31 | $1,048,000 | $883,000 |
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