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2012 Assets Cash & Short-term Investments 6,619.0 Total Receivables, Net 7,041.0

ID: 2732411 • Letter: 2

Question

2012

Assets

Cash & Short-term Investments

6,619.0

Total Receivables, Net

7,041.0

Total Inventory

3,581.0

Prepaid Expenses

1,479.0

Other Current Assets, Total

0.0

Total Current Assets

18,720.0

Property/Plant/Equipment, Total, Net

19,136.0

Goodwill, Net

16,971.0

Intangibles, New

16,525.0

Long-term Investments

2,351.0

Note Receivable, Long-term

136.0

Other Long-term Assets, Total

799.0

Total Assets

74,638.0

Liabilities & SEquity

Accounts Payable

4,451.0

Payable/Accrued

0.0

Accrued Expenses

3,892.0

Notes Payable/Short-term Debt

4,815.0

Current Port. Of LT Debt/Capital Leases

0.0

Other Current Liabilities, Total

3,931.0

Total Current Liabilities

17,089.0

Total Long-term Debt

23,544.0

Deferred Income Tax

5,063.0

Minority Interest

105.0

Other Liabilites, Total

6,543.0

Total Liabilities

52,344.0

Redeemable Preferred Stock

0.0

Preferred Stock, Non-Redeemable, Net

-(123.0)

Common Stock

26.0

Additional Paid-In Capital

4,178.0

Retained Earnings

43,158.0

Treasury Stock, Common

-(19,458.0)

ESOP Debt Guarantee

0.0

Unrealized Gain (Loss)

0.0

Other SEquity, Total

-(5,487.0)

Total SEquity

22,294.0

Total Liabilities & SEquity

74,638.0

Total Common Shares Outstanding

1,544.0

Total Preferred Shares Outstanding

0.8

2012

2011

Revenue

65,492.0

66,504.0

Other Revenue, Total

0.0

0.0

Total Revenue

65,492.0

66,504.0

Cost of Revenue, Total

31,291.0

31,593.0

Gross Profit

34,201.0

34,911.0

Selling/General/Administrative Expenses, Total

24,675.0

24,433.0

Research & Development

0.0

0.0

Depreciation/Amortization

119.0

133.0

Interest Expense (Income), Net Operating

0.0

0.0

Unusual Expense (Income)

295.0

712.0

Other Operating Expense, Total

0.0

0.0

Operating Income

9,112.0

9,633.0

Interest Income (Expense), Net Non-Operating

0.0

0.0

Gain (Loss) on Sale of Assets

0.0

0.0

Other, Net

0.0

0.0

Income Before Tax

8,304.0

8,834.0

Income Tax, Total

2,090.0

2,372.0

Income After Tax

6,214.0

6,462.0

Minority Interest

-(36.0)

-(19.0)

Equity in Affiliates

0.0

0.0

U.S. GAAP Adjustments

0.0

0.0

Net Income Before Extra Items

6,178.0

6,320.0

Total Extraordinary Items

0.0

0.0

Net Income

6,178.0

6,320.0


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Question

Please show ALL work!!!!!

2012

Assets

Cash & Short-term Investments

6,619.0

Total Receivables, Net

7,041.0

Total Inventory

3,581.0

Prepaid Expenses

1,479.0

Other Current Assets, Total

0.0

Total Current Assets

18,720.0

Property/Plant/Equipment, Total, Net

19,136.0

Goodwill, Net

16,971.0

Intangibles, New

16,525.0

Long-term Investments

2,351.0

Note Receivable, Long-term

136.0

Other Long-term Assets, Total

799.0

Total Assets

74,638.0

Liabilities & SEquity

Accounts Payable

4,451.0

Payable/Accrued

0.0

Accrued Expenses

3,892.0

Notes Payable/Short-term Debt

4,815.0

Current Port. Of LT Debt/Capital Leases

0.0

Other Current Liabilities, Total

3,931.0

Total Current Liabilities

17,089.0

Total Long-term Debt

23,544.0

Deferred Income Tax

5,063.0

Minority Interest

105.0

Other Liabilites, Total

6,543.0

Total Liabilities

52,344.0

Redeemable Preferred Stock

0.0

Preferred Stock, Non-Redeemable, Net

-(123.0)

Common Stock

26.0

Additional Paid-In Capital

4,178.0

Retained Earnings

43,158.0

Treasury Stock, Common

-(19,458.0)

ESOP Debt Guarantee

0.0

Unrealized Gain (Loss)

0.0

Other SEquity, Total

-(5,487.0)

Total SEquity

22,294.0

Total Liabilities & SEquity

74,638.0

Total Common Shares Outstanding

1,544.0

Total Preferred Shares Outstanding

0.8

Find the following:

Liquidity Ratios

1. Current ratio

2. Quick ratio

Leverage Ratios

3. Debt-to-total-assets ratio

4. Debt-to-equity ratio

5. Long-term debt-to-equity ratio

6. Times-earned-interest ratio

Activity Ratios

7. Inventory turnover

8. Fixed assets turnover

9. Total assets turnover

10. Accounts receivable turnover: Annual credit sales/Accounts receivable or

Accounts receivable turnover: Net sales/Average accounts receivable

(Show which one)

11. Average Collection Period: Accounts receivable/Total credit sales / 365 days or

Average Collection Period: Accounts receivable/net sales

(Show which one)

Profitability Ratios

12. Gross profit margin

13. Operating profit margin

14. Net profit margin

15. Return on total assets (ROA)

16. Return on stockholders’ equity (ROE)

17. Earnings per share (EPS)

2012

Assets

Cash & Short-term Investments

6,619.0

Total Receivables, Net

7,041.0

Total Inventory

3,581.0

Prepaid Expenses

1,479.0

Other Current Assets, Total

0.0

Total Current Assets

18,720.0

Property/Plant/Equipment, Total, Net

19,136.0

Goodwill, Net

16,971.0

Intangibles, New

16,525.0

Long-term Investments

2,351.0

Note Receivable, Long-term

136.0

Other Long-term Assets, Total

799.0

Total Assets

74,638.0

Liabilities & SEquity

Accounts Payable

4,451.0

Payable/Accrued

0.0

Accrued Expenses

3,892.0

Notes Payable/Short-term Debt

4,815.0

Current Port. Of LT Debt/Capital Leases

0.0

Other Current Liabilities, Total

3,931.0

Total Current Liabilities

17,089.0

Total Long-term Debt

23,544.0

Deferred Income Tax

5,063.0

Minority Interest

105.0

Other Liabilites, Total

6,543.0

Total Liabilities

52,344.0

Redeemable Preferred Stock

0.0

Preferred Stock, Non-Redeemable, Net

-(123.0)

Common Stock

26.0

Additional Paid-In Capital

4,178.0

Retained Earnings

43,158.0

Treasury Stock, Common

-(19,458.0)

ESOP Debt Guarantee

0.0

Unrealized Gain (Loss)

0.0

Other SEquity, Total

-(5,487.0)

Total SEquity

22,294.0

Total Liabilities & SEquity

74,638.0

Total Common Shares Outstanding

1,544.0

Total Preferred Shares Outstanding

0.8

Explanation / Answer

Liquidity ratio 1. Current ratio = Current Assets / Current Liabilities                             =18720 / 17089                             =1.095 2. Quick Ratio = (Current Assets - Inventory ) / Current Liabilities                          =(18720-3581 ) /17089                          =0.886 Leverage Ratios 3. Debt to Total Asset Ratio = Total Liabilities / Total Assets                                                   = 52344 / 74638                                                   =0.70 4. Debt to Equity Ratio = Total Liabilites / Stockholders Equity                                           = 52344 / 22294                                           =2.35 5. Long Term Debt to Equity = Total Long Term Debt / Equity                                                     =23544 / 22294                                                     =1.05 6. Times Earned Interest Ratio = EBIT / Interest Expense                                                         = Can not calculate as Interest Expense is 0. Activity Ratios 7. Inventory Turnover = Annual Sales / Inventory                                         =65492 / 3581                                         =18.28 8. Fixed Assets Turnover Ratio = Net Sales / Net Fixed Assets                                                        =65492 / 19136                                                        =3.42 9. Total Assets Turnover Ratio = Net Sales / Total Assets                                                        =65492 / 74638                                                        =0.877 10. Accounts Receivable Turnover = Annual Credit Sales / Accounts Receivable 11. Average Collection Period = Accounts Receivable / Total Credit Sale / 365 days Profitabiliy Ratio 12. Gross Profit Margin = Gross Profit / Total Sales *100                                            = 34201 / 65492*100                                            =52.22% 13. Operating Profit Margin = Operating Profit / Total Sales *100                                                   = 9112 / 65492*100                                                   = 13.91 % 14. Net Profit Margin = Net Profit / Total Sales*100                                        =6178/65492*100                                         =9.43 % 15. Return on Total Assets = Net Income / Total Assets*100                                                =6178/74638*100                                                =8.27% 16. Return on Stock holders equity = Net Income / Stock Holders Equity*100                                                                =6178 / 22294*100                                                                 =27.71 % 17. EPS = Net Income / No. Of Common Stck Outstanding                =6178 / 1544                =4 Note : Ratio No. 3, 8 and 9 can also be calculated taking average assets Avearge Assets = (Opening Assets + Closing Assets )/2