Based on the information above please provide the following ratios and show your

Question

Based on the information above please provide the following ratios and show your work:

Current Ratio

Quick (acid test) Ratio

Net Profit Margin

Gross Profit Margin

Return on Investment

Return on Equity

Earnings per Share

Inventory Turnover

Asset Turnover

Debt to Asset Ratio

Debt to Equity Ratio

Price/Earnings Ratio

Balance Sheet simply represents each item as a percentage of total assets $31,9 $13,44 $14, Accounts Receivable: Reflects the lag between delivery and payment of your products. Inventories: The current value of your inventory across all products. A zero indicatestory your company stocked out. Unmet demand would, of course fall to your competitors. Plant & Equipment: The current Total Current Assets Accounts Receivable $13,421 alue of your plant. Accum Deprec: The total accumulatecd lant & Equi S96,824 $93, y currently owes suppliers for materials and Depreciation Current Debt: The debt the company is obligated pay during the next year of operations. It includes emergency loans used to keep your company solvent should you run out of cash during the year. Long Term Debt: The company's long term debt is in the form of bonds, and this epresents the total value of your bonds. Common Stock The amount of capital invested by shareholders in the company. Retained Earnings: The profits that the company chose to keep instead of paying to shareholders as otal Fixed Assets 42.4% Total Assets 100.0% locatiei.Califiiootil labot. Reta, r13Gp. @K2GB SA"tugulirY LIABILITIES& OWNERS EQUITY Accounts Pa Long Term Debt S9,516 $15,717 $34,742 $49,248 $12,44 $52,442 42.5% ommon Stock Retained 47.89% 57.5% 100.0% $71,084 Total Liab. &O.; Equity $115,500 Cash Flow Statement $20,101 $21,78 ear. Cash injections appear as positive numbers and cash withdrawals as negative umbers. The Cash Flow Statement is an excellent tool for diagnosing emergency loans.Depreciation Vhen negative cash flows exceed positives, you are forced to seek emergency fundingExtraordinary gainsñosses/writeofs S0 r example, if sales are bad and you find yourself carrying an abundance of excess nventory, the report would show the increase in inventory as a huge negative cash flow Inventory oo much unexpected inventory could outstrip your inflows, exhaust your starting cash andAccounts Receivable ($11, ($2,891 Net cash from operations Cash Flows from Investing Activities: Cash Flow Summary Andrews ($3,520 ($1,8 ($13,333) (7 Cash Flows from Financing Activities: Sales of Common Stock Purchase of Common Stock Cash from long term debt Retirement of long term debt ($1,935 10,000 Change in current debt (net) 5,000 ($12,809) Net cash from financing activities Net change in cash position Closing cash position ($10.55 $10,77 $31,91 10,000 Operations Finance Chg. Cash O Operations Investment O Chg. Cash Finance nnual Re

Explanation / Answer

1. Current Ratio: Current Assets / Current Liabilities 71,113/(9,516+15,717) 2.82 2. Quick Ratio: Quick Assets/ Current Liabilities (31,543+13,421)/25,233 1.78 3. Net Profit Margin Net Profit / Net revenue 36,435/16,3291 22.31% 4. Gross Profit Margin Gross Profit / Net revenue 55,723/163,291 34% 5. Return on Investment Net Margin / Total Investment 36,435/123,527 29% 6. Return on equity Net Margin/ Total Equity 36,435/71,084 51% 7. Earning Per Share Profits available to equity share holders / Weighted average number of equity shareholders 36,435/120.8 301.61 (Assuming that every common stock has value of $100 8. Inventory Turnover Cost of goods sold / Average Inventory 107,568/{(26,149+14,796)/2} 5.25 9. Asset Turnover Net Revenue / Average Assets 163,291/{(123,527+115,500)/2} 1.37 10. Debt to Asset Ratio Total Liabilities/ Total Assets 52,442/123,527 0.42 11. Debt to Equity ratio Total Liabilities / Shareholders Equity 52,442/71,084 0.74 12. Price Earning ratio Market price / EPS $100/301.61 0.33 (Since Market price is not given hence book value is considered)

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