Question
XYZ Corporation is a manufacturing company that produces and sells electronic gadgets. The company's fiscal year ended on December 31, 20X5. You are provided with
XYZ Corporation is a manufacturing company that produces and sells electronic gadgets. The company's fiscal year ended on December 31, 20X5. You are provided with the following information:
- Income Statement for the Year Ended December 31, 20X5:
Item | Amount (USD) |
Sales Revenue | $5,000,000 |
Cost of Goods Sold | $2,000,000 |
Gross Profit | ? |
Operating Expenses | $1,200,000 |
Selling & Administrative Expenses | $600,000 |
Depreciation Expense | $100,000 |
Operating Income | ? |
Interest Expense | $50,000 |
Income Before Tax | ? |
Income Tax Expense | $300,000 |
Net Income | ? |
- Balance Sheet as of December 31, 20X5:
Assets | Amount (USD) | Liabilities & Equity | Amount (USD) |
Current Assets: | Current Liabilities: | ||
Cash and Cash Equivalents | $500,000 | Accounts Payable | $200,000 |
Accounts Receivable | $600,000 | Short-term Loans Payable | $300,000 |
Inventory | $800,000 | Total Current Liabilities | ? |
Total Current Assets | ? | ||
Non-current Assets: | Long-term Loans Payable | $1,000,000 | |
Property, Plant & Equipment (net) | $2,000,000 | Total Liabilities | ? |
Total Assets | ? | ||
Shareholders' Equity | |||
Common Stock | $1,000,000 | Retained Earnings | ? |
Total Shareholders' Equity | ? | Total Liabilities & Equity | ? |
- Additional Information:
- Dividends paid during the year amounted to $150,000.
- XYZ Corporation's effective tax rate is 30%.
Required:
- Complete the missing amounts in the income statement and balance sheet.
- Calculate the following financial ratios for XYZ Corporation:
- Gross Profit Margin
- Operating Profit Margin
- Net Profit Margin
- Return on Assets (ROA)
- Return on Equity (ROE)
- Current Ratio
- Debt-to-Equity Ratio
- Based on the financial ratios calculated, provide an analysis of XYZ Corporation's financial performance and financial position for the year ended December 31, 20X5.
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