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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 Inventory turnover Inventory holding period Total asset turnover Current ratio Quick ratio Debt to total assets Times interest earned Fixed charge coverage 6.06 13.33 20.69 12.38 29.48 6.4 57.03 2.2 2.53 1.35 9 % % % x days x days do % X X
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