You have completed the project with the athletic footwear company and have now been tasked with completing a ratio analysis on two years of projections for a new client in the consumer electronics industry. Using the attached document, perform the requested calculations. Income Statement Sales Less: cost of goods sold Gross profits Less: SG&A expenses General and administrative Depreciation expense Operating income Interest expense Earnings before taxes Income taxes pome avail. to common 4. Working capital 5. Inventory turnover 6. Debt to assets ratio (debt = st and It debt) 7. Times interest earned 2023 2022 2021 2023 2015 2016 $368,000 $ 423,000 2022 166,000 187,000 Calculate the following $ 202,000 $ 236,000 ratios for the year 2022 $ 32,000 $ 36,000 and 2023: 18,000 2320p. Operating profit margin $ 152,000 $ 176,800 7,500 (OPM) 9,400 $ 144,500 $ 167.42. Return on assets (ROA) 502 Current 43,350 101,150 $ 117,180 $ Balance Sheet 2014 2015 2016 Cash Accounts receivable Inventory Prepaid rent Total current assets Gross plant and equipment Accumulated depreciation Net plant and equipment Total assets Accounts payable Interest payable Income tax payable Short-term notes Total current liabilities Long-term debt Common stockholders' equity Common stock Retained earnings total common stockholders' equity Total liabilities and equity S 12,600 $ 15,400 25,000 33,800 32.600 58.000 1,600 1,800 S 109,000 72,800 $ 389.000 444,000 (218,400) (236,400) (259,600) S 170,600 $ 170,600 $ 184,400 $ 243,400 $ 2653,440 $ 293,400 2014 2015 2016 35.640 33.600 2000 2,500 3,000 2,000 8.300 10,300 50.440 46.900 $ 92.000 104,000 22.000 116.960 20,000 $ 104,540 124,540 $138.960 253,440 $ 293,400 28.000 14,120 29,000 48,000 1,720 92,840 $ 407,000 2,100 3,600 7,700 $ 41,400 $ 94,000 $ 20,000 $ 88.000 $ 108,000 $ $ 243,400 $ Income Statement Sales Less: cost of goods sold Gross profits Less: SG&A expenses General and administrative Depreciation expense Operating income Interest expense Income taxes Net income 2022 2023 $ 368,000 $423,000 166,000 202,000 $ 236,000 187,000 $ $ 32,000 $ 18,000 36,000 23,200 $152,000 $ 176,800 7,500 9,400 $144,500 $ 167,400 43,350 50,220 $ 101,150 $ 117,180 Calculate the following ratios for the year 2022 and 2023: 1. Operating profit margin (OPM) 2. Return on assets (ROA) 3. Current ratio 4. Working capital 5. Inventory turnover 6. Debt to assets ratio (debt st and it debt) 7. Times interest earned Earnings before taxes Balance Sheet Cash Accounts receivable Inventory Prepaid rent Total current assets Gross plant and equipment Accumulated depreciation Net plant and equipment Total assets Accounts payable Interest payable Income tax payable Short-term notes Total current liabilities Long-term debt Common stockholders' equity Common stock Retained earnings total common stockholders' equity Total liabilities and equity 2022 14,120 29,000 48,000 1.720 92,840 $ 407,000 (236,400) 389.000 (218.400) 170.600 $ 170.600 $ 243,400 $ 263,450 $ 28,000 33,600 2,100 2,000 3,600 3,000 8,300 7.700 41,400 $ 94,000 46,900 $ 92,000 $ 20,000 $ 88,000 20.000 $ 104,540 124,540 $ $ 100,000 $ $243.400 $ 263,440 $ $ $ $ $ 5 2021 12,600 $ 26,000 32,600 1.600 72,800 $ 2023 15,400 33,800 $8,000 1,800 109,000 444,000 (259,600) 184,400 293,400 35,640 2,500 2,000 10,300 50,440 104,000 22,000 116,960 135,960 293,400
