2016 01 2017-01 15498 20719 10842 14324 4657 6395 736 3607 4690 Revenue Cost of
ID: 2789002 • Letter: 2
Question
2016 01 2017-01 15498 20719 10842 14324 4657 6395 736 3607 4690 Revenue Cost of revenue Gross profit Operating expenses Sales, General and administrative Other operating expenses Total operating expenses Operating income Interest Expense Other income (expense) Income before income taxes Provision for income taxes Net income from continuing operations Net income 870 138 3607 1050 4690 155 2886 1705 .375 -602 448 166 282 1329 2458 2735 2881 5298 3116 2016-01 201701 Assets Current assets Cash Cash and cash equivalents Short-term investments Total cash 740 Receivables Inventories 2866 Deferred income taxes Prepaid expenses 156 v Total current assets 3936 3938 Non-current assets Property, plant and equipment Land 181 194 Fixtures and equipment Other properties 2659 Property and equipment, at cost 5810 ccumulated Depreciation -2172 2694 Property, plant and equipment, net 3126 Equity and other investiments Goodwill s022 5024 3574 3675 Intangible assets Deferred income taxes Other long-term assets 51 Total non-current assets 11965 11764 V Total assets 15901 15702 Liabilities and stockholders' equity Liabilities Current liabilities Short-term debt 108 Accounts payable 1252 Taxes payable 156 253 Accrued liabilities 349 Other current liabilities 230 Total current liabilities 2095 2106 Non-current liabilities Long-term debt 6170 Delemed taxes liabilities 1587 1459 Other long-term liabilities 574 Total non-current liabilities 9399 8206 Total liabilities 11494 10312 Stockholders' equity Common stock Additional paid-in capital 2391 2472 Retained earnings 2056 2953 Accumulated other comprehensive income Tatal stockhokders' equity 4407 5390 Total liabilities and stockholders' equity 15901 15702 152 1120 349 7238 578 -38 Use the statements above to compute the FOLLOWING RATIO FOR 2017 4. Quick Ratio XX 5. Payables deferral period 26. Total asset turnover X7. Times interest owned X8. Basic earning power 29. Return on AssetsExplanation / Answer
Answer)
Quick ratio = Cash + Marketable Securities + Receivables / Current liabilities = 866+4+138 / 2106 = 0.4786
Payables deferral Period = (Payables /Cogs )*365 = 1120 /14324 * 365 = 28.5395
Total Asset Turnover = Revenue / Total assets = 20719 / (15702) = 1.31951
Times Interest owned = EBIT / Interest Charged = 1705 / 0 = 0 (Interest expenses is not given in the net income, it seems that the profit and loss statement is not correct because balanc esheet does state long term debt,please check the interest charge figure if you can)
Basic earning power = EBIT / Total Assets = 1705/15702 = 0.1085
Return on asset = Net Income / Total Asset = 896 / 15702 = 0.05706
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