Financial Data for Springfield Power Co. as of December 31, 2004: Inventory $200
ID: 2788161 • Letter: F
Question
Financial Data for Springfield Power Co. as of December 31, 2004:
Inventory $200,000
Long-term debt $300,000
Interest expense $15,000
Accumulated depreciated $440,000
cash $260,000
Net Sales (all credit) $1,500,000
Common Stock $800,000
Accounts receiveables $225,000
Operating expenses (incl. depr. Exp. and taxes) $525,000
Notes payables-current $180,000
Cost of goods sold $940,000
Plant and Equipment $1,300,000
Accounts Payable $160,000
Marketable securities $90,000
Accured wages $65,000
Retained earnings $130,000
From the information above, calculate the follwoing ratios for the Springfield Power Co.
1. Current ratio
2. Acid test ratio
3. Average collection period
4. inventory turnover
5. Gross profit margin
6. operating profit margin
7. net profit margin
8. total asset turnover
9. times-interest-earned
Explanation / Answer
In case of multple parts chegg expert need to do 4 parts Income statement sales 1500000 cost of good sold 940000 gross profit 560000 Operating expense 525000 Operating profit/EBIT 35000 Interest 15000 ` PBT 20000 Gross profit margin= gross profit/net sales Gross profit margin= 560000/1500000 Gross profit margin= 37.33% Operating Margin= operating profit/net sales Operating Margin= 35000/1500000 Operating Margin= 2.33% Times interest earned= EBIT/Interest Times interest earned= 35000/15000 Times interest earned= 2.333333 Net profit margin= Net profit/net sales Net profit margin= 20000/1500000 Net profit margin= 1.33%
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