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Using the financial statements for the Snider Corporation, calculate the 13 basic ratios. (Use 365 days in a year. Round the answers in days to
Using the financial statements for the Snider Corporation, calculate the 13 basic ratios. (Use 365 days in a year. Round the answers in days to whole number and other final answers to 2 decimal places.)
SNIDER CORPORATION Balance Sheet December 31, 20XX | |||
Assets | |||
Current assets: | |||
Cash | $ | 50,000 | |
Marketable securities | 20,000 | ||
Accounts receivable (net) | 160,000 | ||
Inventory | 200,000 | ||
Total current assets | 430,000 | ||
Investments | 60,000 | ||
Plant and equipment | 600,000 | ||
Accumulated amortization | 190,000 | ||
Net plant and equipment | 410,000 | ||
Total assets | $ | 900,000 | |
Liabilities and Shareholders Equity | |||
Current liabilities: | |||
Accounts payable | $ | 90,000 | |
Notes payable | 70,000 | ||
Accrued taxes | 10,000 | ||
Total current liabilities | 170,000 | ||
Long-term liabilities: | |||
Bonds payable | 150,000 | ||
Total liabilities | 320,000 | ||
Shareholders equity | |||
Preferred stock | 100,000 | ||
Common stock | 270,000 | ||
Retained earnings | 210,000 | ||
Total shareholders equity | 580,000 | ||
Total liabilities and shareholders equity | $ | 900,000 | |
SNIDER CORPORATION Income Statement Year ending December 31, 20XX | ||
Sales (on credit) | $ | 1,980,000 |
Cost of goods sold | 1,280,000 | |
Gross profit | 700,000 | |
Selling and administrative expenses* | 475,000 | |
Operating profit (EBIT) | 225,000 | |
Interest expense | 25,000 | |
Earnings before taxes (EBT) | 200,000 | |
Taxes | 80,000 | |
Earnings after taxes (EAT) | $ | 120,000 |
*Includes $35,000 in lease payments.
Profit margin | % | |
Return on assets (investment) | % | |
Return on equity | % | |
Receivables turnover | ||
Average collection period | days | |
Inventory turnover | ||
Inventory holding period | days | |
Total asset turnover | ||
Current ratio | ||
Quick ratio | ||
Debt to total assets | % | |
Times interest earned | ||
Fixed charge coverage | ||
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