work through the financial statements of ZZZZ Best. This problem starts with 5-101 on page 135 of the text book. Work through problem 5-101 on your own. For the discussion use question 5-102 which is asking if you found anything unusual in the analysis.
5-100. Locate Tootsie Roll's annual report at www.tootsie com. Using the 2010 annual report a. Prepare a common-size balance sheet and in come statement b. Compute the following financial ratios: Profitability Gross margin percent Return on sales Return on assets Return on equity Efficiency Total asset turnover Accounts receivable turnover Accounts receivable days Inventory turnover Inventory days Operating cycle Leverage Debt to assets Equity to assets Debt to equity Equity multiplier Liquidity Current ratio Acid test (quick) ratio Net working capital Equity Book value per share Earnings per share Price to earnings Dividend payout ratio Dividend yield c. Prepare a memo to your professor discussing five key findings revealed by your analysis. Using the following financial statements for ZZZZ Best a. Prepare a common-size balance sheet and income statement for the three-month interim period ending July 31, 1986 Compute the following financial ratios for the interim period ending July 31. 1986 Profitability Gross margin percent Return on sales Return on assets Return on equity Efficiency Total asset turnover Accounts receivable turnover Accounts receivable days Leverage Debt to assets Equity to assets Debt to equity Equity multiplier Liquidity Current ratio Acid test (quick) ratio Net working capital 5-102. Using the ratio analysis developed in problem 5-101, identify areas where further analysis might be warranted. Write a memo to your professor detailing your findings. Include two preliminary hypotheses regarding potential fraudulent activity. 5-103. Using the data provided in problem 5-101, prepare a cash flow analysis for the interim period ending July 31, 1986. Additional information required for this analysis includes the following Depreciation for the period is $105,651 Amortization of goodwill for the period is $618 All deferred tax adjustments are noncash in nature 5-100. Locate Tootsie Roll's annual report at www.tootsie com. Using the 2010 annual report a. Prepare a common-size balance sheet and in come statement b. Compute the following financial ratios: Profitability Gross margin percent Return on sales Return on assets Return on equity Efficiency Total asset turnover Accounts receivable turnover Accounts receivable days Inventory turnover Inventory days Operating cycle Leverage Debt to assets Equity to assets Debt to equity Equity multiplier Liquidity Current ratio Acid test (quick) ratio Net working capital Equity Book value per share Earnings per share Price to earnings Dividend payout ratio Dividend yield c. Prepare a memo to your professor discussing five key findings revealed by your analysis. Using the following financial statements for ZZZZ Best a. Prepare a common-size balance sheet and income statement for the three-month interim period ending July 31, 1986 Compute the following financial ratios for the interim period ending July 31. 1986 Profitability Gross margin percent Return on sales Return on assets Return on equity Efficiency Total asset turnover Accounts receivable turnover Accounts receivable days Leverage Debt to assets Equity to assets Debt to equity Equity multiplier Liquidity Current ratio Acid test (quick) ratio Net working capital 5-102. Using the ratio analysis developed in problem 5-101, identify areas where further analysis might be warranted. Write a memo to your professor detailing your findings. Include two preliminary hypotheses regarding potential fraudulent activity. 5-103. Using the data provided in problem 5-101, prepare a cash flow analysis for the interim period ending July 31, 1986. Additional information required for this analysis includes the following Depreciation for the period is $105,651 Amortization of goodwill for the period is $618 All deferred tax adjustments are noncash in nature
