please include steps used to solve this. Looking back over the last few years it
ID: 2802829 • Letter: P
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please include steps used to solve this.
Looking back over the last few years it is clear that Nicole Mackisey has accomplished a lot running her business Nicole's Getaway Spa (NGS) Nicole is curious about her company's performance as she compares its financial statements. 2016 2015 2014 Balance Sheet Cash Accounts Receivable, Net Inventory Prepaid Expenses Other Current Assets 2,300 1,350 870 330 7,300 4,800 2.800 3,150 1,170 380 4,400 2,100 1,750 320 230 Total Current Assets Property and Equipment, Net 12,15012,300 67,000 82,000 8,800 30,000 Total Assets $79,150 94,300 $38,800 Current Liabilities Long-Term Liabilities 9.200 9,200 $10,200 36,050 51.050 15.050 Total Liabilities 45 250 60,250 25250 Common Stock Retained Earnings 26,500 7,400 31,500 2,550 12,400 1.150 Total Stockholders' Equity 33,900 34,050 13,550 Total Liabilities and Stockholders' Equity y / / / .579,150. ( $94 300 , , 538 800 Income Statement Sales Revenue Cost of Goods Sold $81.500 $57,500$45,500 65.900 48 90035,900Explanation / Answer
I'm calculating for 2016. You calculate for 2015 on your own:
1. a) Gross profit percentage= Gross profit/Total sales
= 15,600/81,500
= 19.14%
ROE= Net income/Total shareholder's equity
= 7,160/33,900
= 21.12%
Fixed asset turnover ratio= Sales/ fixed assets
= 81,500/67,000
= 1.22 times
2. Current ratio for 2016= Current assets/Current liabilities
= 12,150/9,200
= 1.32
3. a) Debt to asset ratio for 2016
= Total debt/Total assets
= Total liabilities/Total assets
= 45,250/79,150
= 0.57
Times interest earned ratio for 2016:
EBIT/I
= Income from operations/interest
= 11,450/1,090
= 10.5 times
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