SNIDER CORPORATION Balance Sheet December 31,2013 Assets Current assets Cash Mar

Question

SNIDER CORPORATION Balance Sheet December 31,2013 Assets Current assets Cash Marketable securities Accounts receivable (net) S 55,300 23,800 205,000 231,000 Total current assets S 515,100 64,000 Plant and equipment $661,000 200,000 Net plant and equipment Total assets 1,040,100 Liabilities and Stockholders Equity Current liabilities Accounts payable Notes payable $ 93,300 70,000 Total current liabilities Bonds payable Total iabilities S 179,800 151,200 331,000 Long-term liabilities Stockholders' equity Preferred stock, $50 par value Common stock, $1 par value Capital paid in excess of par Retained earnings S 100,000 80,000 190,000 339,100 Total stockholders' equity s 709.100 Total liabilities and stockholders equity $1,040,100 SNIDER CORPORATION Income Statement For the Year Ending December 31, 2013 Sales (on credit) Cost of goods sold $2,019.000 1,305,000 Gross profit Selling and administrative expenses S 714,000 Operating profit (EBIT) Interest expense S 145,000 31,000 Earmnings before taxes (EBT) Taxes S 114,000 80,800 Earnings after taxes (EAT) $ 33,.200

Explanation / Answer

Snider Corporation Details Ratio Calculation a Profitability Ratio Profit Margin 1.64% =EAT /Sales   Return on Assets   3.19% =EAT/Total Asset   Return on Equity   4.68% =EAT/Total Stockholders'Equity b Asset utlization ratio Receivable TO times                                  9.8 = Sale on A/C/Account Receivable Average collection period days                                37.1     =365/Receivable TO Inventory TO times                                  5.6 =COGS/Inventory Fixed Asset TO times                                  4.4 = Sales /Net Fixed Asset Total Asset TO times                                  1.9 = Sales /Total Fixed Asset c Liquidity Ratio Current ratio times                                  2.9 =Current Asset/Current Laib Quick ratio Times                                  1.6 =( Current Asset-Inv)/Current Liab d Debt Utilization ratio Debt to Total Assets % 31.82% =Total Liabilities/Total Assets Times Interest Earned                                    4.7 = EBIT/Interest expense Fixed charge coverage times                                  2.1 = (EBIT +Lease payment)/(Interest+Lease payment)

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