Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

XYZ Company Income statement Answer with interpretation of these ratios plz. XYZ Company Balance Sheet As of Dec 31, 2018 21,550 -7,250 14,300 ASSETS XYZ

image text in transcribed

image text in transcribed

image text in transcribed

XYZ Company Income statement Answer with interpretation of these ratios plz.

XYZ Company Balance Sheet As of Dec 31, 2018 21,550 -7,250 14,300 ASSETS XYZ Company Income Statement For the Period Ended Dec 31, 2018 Sales Less: COGS Gross profit Less: Operating Expenses Advertising 350 Rent 4,500 Supplies 320 Payroll taxes 850 Wages 7,000 Operating Income other revenue EBIT Less: Bank charges Cash Accounts Receivable Inventory Prepaid Insurance Land TOTAL ASSETS 69,280 8,500 5,500 6,150 89,430 50,000 139,430 -13,020 1,280 20 1,300 -120 LIABILITIES Accounts Payable Mortgage Payable 3,250 35,000 38,250 1,180 EQUITIES Owner's Investment Income Summary TOTAL LIAB. & EQUITY 100,000 1,180 101,180 139,430 Financial statements in 000 Outstanding # of shares = 10,000,000 Market price = 25 Given the above, compute for the following and comment on the figures you arrived at F) Fixed Assets turnover = G) Total assets turnover = H) Debt Ratio = 1) Debt to Equity Ratio = 3) Times-Interest-Earned Ratio = K) Operating Margin = L) Profit Margin= M) Basic Earning Power = N) Return on Assets = 0) Return on Equity = P) Earnings per share = Q) Price/Earnings ratio = R) Market/Book =

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

Survey Of Accounting

Authors: Carl S. Warren

1st Edition

0538870850, 9780538870856

More Books

Students also viewed these Accounting questions