Question
Using XYZ Company's income statement and balance sheet below calculate: Current ratio Quick ratio Total debt to total assets Operating margin Profit margin Return on
Using XYZ Company's income statement and balance sheet below calculate:
Current ratio
Quick ratio
Total debt to total assets
Operating margin
Profit margin
Return on assets
P/E ratio
Financial leverage
ROE
Use the DuPont equation and solve for ROE.
|
| 20XX |
| Assets |
|
| Cash | $ 85,632 |
| Accounts receivable | 878,000 |
| Inventories | 1,716,480 |
| Total current assets | $ 2,680,112 |
| Gross fixed assets | 1,197,160 |
| Less accumulated depreciation | 380,120 |
| Net fixed assets | $ 817,040 |
| Total assets | $ 3,497,152 |
| Liabilities and Equity |
|
| Accounts payable | $ 436,800 |
| Accruals | 408,000 |
| Notes payable | 300,000 |
| Total current liabilities | $ 1,144,800 |
| Long-term debt | 400,000 |
| Common stock | 1,721,176 |
| Retained earnings | 231,176 |
| Total equity | $ 1,952,352 |
| Total liabilities and equity | $ 3,497,152 |
| Sales | $ 8,035,600 |
| Cost of goods sold | 6,875,992 |
| Other expenses | 550,000 |
| Total operating costs excluding deprec. & amort. | $ 7,425,992 |
| EBITDA | $ 609,608 |
| Deprec. & amort. | 115,960 |
| Operating income (EBIT) | $ 493,648 |
| Interest expense | 71,008 |
| Earnings before taxes | $ 422,640 |
| Taxes (40%) | 169,056 |
| Net income | $ 253,584 |
|
|
|
| EPS | $ 1.014 |
| DPS | $ 0.220 |
| Book value per share | $ 7.809 |
| Stock price | $ 12.17 |
| Shares outstanding | 250,000 |
| Tax rate | 40.00% |
| Lease payments | 30,000 |
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access with AI-Powered Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started