Using the financial statements for the Snider Corporation, calculate the 13 basic ratios found in the chapter.

MARNI CORPORATION Balance Sheet December 31, 2018

Assets

Current assets: Cash $50,000

Accounts receivable 100,000

Inventory 200,000

Total current assets $350,000

Net plant and equipment $650,000

Total assets $1,000,000

Liabilities and Stockholders' Equity Current liabilities:

Accounts payable $100,000

Accrued expenses 90,000

Total current liabilities $190,000 Long-term liabilities:

Long-term debt: 250,000

Total liabilities $440,000

Stockholders' equity:

Common stock 100,000

Capital paid in excess of par 50,000

Retained earnings 410,000

Total stockholders' equity $560,000

Total liabilities and stockholders' equity $1,000,000

MARNI CORPORATION Income Statement For the Year Ending December 31, 2018

Sales (all on credit) $2,000,000

Less: Cost of goods sold 1,750,000

Gross profit $250,000

Less: Selling and administrative expenses 30,000

Fixed Lease Expenses 10,000

Depreciation 60,000 Operating profit (EBIT) $150,000

Less: Interest expense 25,000

Earnings before taxes (EBT) $125,000

Less: Taxes (40%) 50,000

Earnings after taxes (EAT) $75,000

Solution Instructions Enter formulas to calculate the following ratios. Use a 360 day year.

Profitability ratios Profit margin FORMULA [DuPont System of Analysis]

Return on assets (investment) FORMULA FORMULA

Return on equity FORMULA FORMULA

Assets utilization ratios

Receivable turnover FORMULA

Average collection period FORMULA

Inventory turnover FORMULA

Fixed asset turnover FORMULA

Total asset turnover FORMULA

Liquidity ratios Current ratio FORMULA

Quick ratio FORMULA

Debt utilization ratios

Debt to total assets FORMULA

Times interest earned FORMULA

Fixed charge coverage FORMULA