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using the information in the image, you may (or may not) need to fill in missing information. Which of the following items characterize New Tech
using the information in the image, you may (or may not) need to fill in missing information.
Which of the following items characterize New Tech Company? (It may be more than one option).
EXPLAIN (and report your calculations) (20 points)
1.High debt & unprofitable
2. Low debt & unprofitable
3. Decreasing profit margin
4. High Asset Utilization Performance
5. Low Asset Utilization Performance
6. Increasing sales with a decreasing sales growth rate
7. option 1, 3 and 5 characterize New Tech Company
ew AaBbCc AaBbCcl AaBbCcDdEe Heading 1 Heading 2 Normal NEW TECH COMPANY Income Statement Sales Cost of goods sold 2010 2011 2012 100 110 50 20 51 20 | 65 120 52 20 60 10 Depreciation General, sales & admin expenses 70 Taxes Net Income 10 10 2010 2011 2012 40 Balance Sheet Current Assets Property, plant & equipment Total Assets Current Liabilities Long-Term Liabilities Equity Total Liabilities & Equity 45 40 60 55 60 40 10 50 40 10 50 35 15 50 INDUSTRY AVERAGE RATIOS 2010 2011 2012 1.5 CR (Current Ratio) DR (Debt Ratio) TL/TA TAT (Total Asset Turnover)2 PM (Profit Margin) Sales Growth Profit Growth 1.5 1 16096 160% 160% 4% 3% 5% 2.2 5% 2.5 6% 13% 2.50% 25% 20%
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