Help me finish this problem. Everything completed up to H. on the requirments pi

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Help me finish this problem. Everything completed up to H. on the requirments picture.

Requirements 1. Compute the following ratios for 2016 and 2015: a. b. c. Current ratio Quick (acid-test) ratio Receivables turnover and days' sales oustanding (DSO) (round to the nearest whole day) d. Inventory turnover and days' inventory outanding (DIO) (round to the nearest whole day) e. Accounts payable turnover and days' payable outstanding (DPO) (use cost of goods sold in the numerator of the turnover ratio and round DPO to the nearest whole day) f. Cash conversion cycle (in days) g. Times-interest-earned ratio h. Return on assets (use DuPont Analysis) i. Return on common stockholders' equity (use DuPont Analysis) . Earnings per share of common stock g. Price-earnings ratio 2. Decide whether (a) Carlton's financial position improved or deteriorated during 2016 and (b) the investment attractiveness of Carlton's common stock appears to have increased or decreased. 3. How will what you learned in this problem help you evaluate an investment? Print Done

Explanation / Answer

2016 2015 h) Return on Assets 13.04 9.10 % Net income/Avg assets 106000/((842000+784000)/2)*100 68000/((784000+710000)/2)*100 i) Return on common stockholder eqity 4.90 3.36 % Net profit margin*Asset Turnover*equity multilier (106000/686000*100)*13.04*842000/346000 (68000/597000)*9.1*784000/242000 j) EPS 5.58 4.86 Net Income/weighted avg shares 106000/19000 68000/14000 g) PE ratio 13.00 13.00 MPS/EPS*100 72.54/5.58 63.18/4.86 ans 2 Yes the financial performance improved as there is increase in profitability ratio 2) Yes , investment attractiveness has improved ans 3 Analaysing the ratio helps to evaluate an investment

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