Financial Statement & Ratios Accounts Payable $60.00 Inventories 300.00 Mortgage
ID: 2725085 • Letter: F
Question
Financial Statement & Ratios
Accounts Payable
$60.00
Inventories
300.00
Mortgage Bonds
150.00
Sales
2500.00
Retained Earnings
324.00
Operating Expenses
1000.00
Accrued Wages and Taxes
75.00
Interest Expense
30.00
Accounts Receivable
135.00
Notes Payable (current)
10.00
Fixed Assets
800.00
Income Tax Expense
60.00
Cash
15.00
Common Stock
281.00
Accumulated Depreciation
350.00
Cost of Goods Sold
1300.00
1. Create a common-sized balance sheet and income statement for the Noble Corporation.
2. Compute the following ratios for the Noble Corporation, If possible:
A. Current Ratio
E. Inventory Turnover
b. Quick Ratio
f. Debt Ratio
c. Return on Equity
g. Profit Margin
d. Operating Profit margin
Accounts Payable
$60.00
Inventories
300.00
Mortgage Bonds
150.00
Sales
2500.00
Retained Earnings
324.00
Operating Expenses
1000.00
Accrued Wages and Taxes
75.00
Interest Expense
30.00
Accounts Receivable
135.00
Notes Payable (current)
10.00
Fixed Assets
800.00
Income Tax Expense
60.00
Cash
15.00
Common Stock
281.00
Accumulated Depreciation
350.00
Cost of Goods Sold
1300.00
Explanation / Answer
All Amounts in $ 1. Income Statement % to Sales Sales 2500 100% Cost of Goods Sold 1300 52% Contribution Margin 1200 48% Operating Expenses 1000 40% Interest Expense 30 1% Net Income before Taxes 170 7% Income Tax Expense 60 2% Income Post Taxes 110 4% Balance Sheet Assets Current Assets % of total assets Cash 15 1.67% Accounts Receivable 135 15.00% Inventories 300 33.33% Total Current Assets 450 50.00% Fixed Assets 800 88.89% Less : Accumulated Depreciation 350 450 38.89% 50.00% Total Assets 900 100.00% Liabilities % of total liabilities Current Liabilities Accounts Payable 60 7% Accrued Wages and Taxes 75 8% Notes Payable (Current) 10 1% Total Current Liabilities 145 16.11% Mortage Bonds 150 17% Common Stock 281 31% Retained Earnings 324 36% Total Assets 900 100.00% 2. A. Current Ratio = Current Assets / Current Liabilities = 3.10 : 1 b. Quick Ratio = (Current Assets - Inventory) / Current Liabilities = 1.03 : 1 c. Return on Equity = Net Income post taxes/ Total Equity = Common Stock + Retained Earnings = 18.18% d. Operating Profit margin = Net Income before taxes / Sales = 6.80% E. Inventory Turnover = 365 / (Cost of Goods Sold / Inventory) = 84.23077 days or 4.333333 times f. Debt Ratio = Debt / Equity = 0.487603 : 1 g. Profit Margin = Net Income post taxes / Sales = 4.40%
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