Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

What is Laroque's quick ratio? What is Laroque's Return on Assets for 2015? (Percentage) What is Laroque's Profit Margin for 2015? (Percentage) What is Laroque's

What is Laroque's quick ratio?

What is Laroque's Return on Assets for 2015? (Percentage)

What is Laroque's Profit Margin for 2015? (Percentage)

What is Laroque's Average Collection Period (Day's Sales in Receivables) for 2015? Answer in days.

image text in transcribed

Laroque Enterprises Income Statement for Years 2014 and 2015 (000 dollars) Sales Cost of Goods Sold Gross Profit Operating expenses Operating Profit Interest Expense Earnings Before Tax Income Taxes (40%) Net Profit after Tax 2014 $ 40,909 20,909 20,000 13,818 6,182 400 5,782 2,313 3,469 2015 $ 45,000 23,000 22,000 13,000 6,000 412 5,588 2.235 3,353 Laroque Enterprises Balance Sheet As of End of Year 2014 and 2015 (000 dollars) 2014 2015 Assets: Cash Accounts Receivable Inventory Total Current Assets Fixed Assets Total Assets $ 2,000 6,000 5,000 13,000 17,000 30,000 $ 1,800 7,600 5,220 14,620 19,000 33,620 Liabilities & Stockholders' Equity Accounts Payable Notes Payable Accrued Expenses Current Liabilities Long-term Debt Total Liabilities 2,000 3,000 3,000 8,000 4,000 12,000 2,600 3,300 3.100 9,000 4,000 13,000 Common Stock Retained Earnings Total Stockholders' Equity Total Liabilities & SE 4,000 14,000 18,000 30,000 4,000 16,620 20,620 33,620 Miscellaneous Information: Shares Common Stock Outstanding - 2,000,000 shares Current market price of stock - $13.75 2014 year-end market price - $16.36 Industry Average Ratios: 2014 Ratios: Gross profit margin 50.29% 48.91% Operating profit margin 18.14% 15.12% Net profit margin 9.50% 8.53% Return on Assets 10.04% 11.62% Return on Equity 23.22% 19.32% Current Ratio 1.51 1.62 Quick Ratio 1.02 1.03 Debt ratio 49.86% 40.37% Times interest earned 25.23 15.50 Average Collection period 45.21 days 53.50 days Inventory turnover 8.21 4.23 Price Earnings ratio 10.02 9.43

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Probability For Risk Management

Authors: Matthew J. Hassett, Donald G. Stewart

2nd Edition

156698548X, 978-1566985482

More Books

Students also viewed these Finance questions

Question

How would you approach this unit?

Answered: 1 week ago