Using the data provided in problem 5-101, prepare a cash flow analysis for the interim period ending July 31, 1986. Additional information required for this analysis includes the following: Depreciation for the period is $105,651. Amortization of goodwill for the period is $618. All deferred tax adjustments are noncash in nature
Chapter 5 Financial Statements Analysis Reading Between the Lines 135 Chapter Problems 5-100. Locate Tootsie Roll's annual report at www.tootsie .com. Using the 2010 annual report: a. Prepare a common-size halance sheet and in- come statement. b. Compute the following financial ratios: Profitability . Gross margin percent Return on sales Efficiency Return on assets Return an equity E Total asset turnover Accounts receivable turnover Accounts receivable days Inventory turnover Inventory days Operating cycle Leverage Debt to assets Equity to assets Deht to equity Equity multiplier Liquidity * Current ratio Acid test (quick) ratio Net working capital Equity Book valuc per share Earnings per share Price to earnings Dividend payout ratio Dividend yield c. Prepare a memo to your professor discussing live key finuings revealed by your analysis. 5-101. Using the following financial statements for ZZZZ Best: a. Prepare a common-size balance sheet and income statement for the three-month interim period ending July 31. 1986. b. Compute the following financial ratios for the three-month interim period ending July 31, 1986: Prolitability . Gross margin percent Return on sales Return on assets . Return on cquity Efficiency Total asset turnover Accounts receivable turnover Accounts receivable days Leverage Debt to assets Equity to assets Debt to equity Equity multiplier Liquidity Current ratio Acid test (quick) ratio Net working capital 5-102. Using the ratio analysis developed in problem 5-101, identify areas where further analysis might be warranted. Write a memo to your professor detailing your findings. Include two preliminary hypotheses regarding potential fraudulent activity 5-103. Using the data provided in problem 5-101, prepare a cash flow analysis for the interim period ending July 31, 1986. Additional information required for this analysis includes the following: Depreciation for the period is $105.651. Arcortization of goodwill for the period is $618. All deterred tax adjustments are noncash in nature Chapter 5 Financial Statements Analysis Reading Between the Lines 135 Chapter Problems 5-100. Locate Tootsie Roll's annual report at www.tootsie .com. Using the 2010 annual report: a. Prepare a common-size halance sheet and in- come statement. b. Compute the following financial ratios: Profitability . Gross margin percent Return on sales Efficiency Return on assets Return an equity E Total asset turnover Accounts receivable turnover Accounts receivable days Inventory turnover Inventory days Operating cycle Leverage Debt to assets Equity to assets Deht to equity Equity multiplier Liquidity * Current ratio Acid test (quick) ratio Net working capital Equity Book valuc per share Earnings per share Price to earnings Dividend payout ratio Dividend yield c. Prepare a memo to your professor discussing live key finuings revealed by your analysis. 5-101. Using the following financial statements for ZZZZ Best: a. Prepare a common-size balance sheet and income statement for the three-month interim period ending July 31. 1986. b. Compute the following financial ratios for the three-month interim period ending July 31, 1986: Prolitability . Gross margin percent Return on sales Return on assets . Return on cquity Efficiency Total asset turnover Accounts receivable turnover Accounts receivable days Leverage Debt to assets Equity to assets Debt to equity Equity multiplier Liquidity Current ratio Acid test (quick) ratio Net working capital 5-102. Using the ratio analysis developed in problem 5-101, identify areas where further analysis might be warranted. Write a memo to your professor detailing your findings. Include two preliminary hypotheses regarding potential fraudulent activity 5-103. Using the data provided in problem 5-101, prepare a cash flow analysis for the interim period ending July 31, 1986. Additional information required for this analysis includes the following: Depreciation for the period is $105.651. Arcortization of goodwill for the period is $618. All deterred tax adjustments are noncash in nature
