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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
1. Common Size Balance Sheet for Noble Corporation:
Common Size Income Statement:
2. A. Current Ratio = Current assets / Current liabilities = 450 / 145 = 3.10
B. Quick ratio = (Current assets - Inventories) / Current liabilities = (450 - 300) / 145 = 1.03
C. Return on equity = Net income / Stockholders' equity = 110 / ( 281 + 324) = 18.18%
D. Operating profit margin = EBIT / Sales x 100 = 8%
E. Inventory turnover = Cost of goods sold / Inventories = 1,300 / 300 = 4.33 times
F. Debt ratio = Total debt / Total assets = 295 / 900 x 100 = 32.78%
G. Profit margin = Net income / Sales x 100 = 110 / 2,500 x100 = 4.4%
$ % or Total Assets Cash 15 1.67% Accounts receivable 135 15% Inventories 300 33.33% Total current assets 450 50% Fixed Assets 800 88.88% Accumulated depreciation (350) (38.88%) Fixed assets, net 450 50% Total assets 900 100% Liabilities and stockholders' equity % of total liabilities and stockholders' equity Accounts payable 60 6.67% Accrued wages and taxes 75 8.33% Notes payable ( current) 10 1.11% Current liabilities 145 16.11% Mortgage bonds 150 16.67% Common stock 281 31.22% Retained earnings 324 36% Total liabilities and stockholders' equity 900 100%Related Questions
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