calculating activity and profitability ratios 454933
Aug 29, 2021 | Uncategorized
| Financial statements for Askew Industries for 2013 are shown below: |
| 2013 Income Statement |
|
($ in 000s) |
| Sales |
$ |
8,800 |
|
| Cost of goods sold |
|
(6,200 |
) |
| |
|
|
|
| Gross profit |
|
2,600 |
|
| Operating expenses |
|
(1,900 |
) |
| Interest expense |
|
(160 |
) |
| Tax expense |
|
(216 |
) |
| |
|
|
|
| Net income |
$ |
324 |
|
| |
|
|
|
|
| Comparative Balance Sheets |
|
Dec. 31 |
|
|
|
2013 |
2012 |
| Assets |
|
|
|
|
|
|
| Cash |
$ |
560 |
|
$ |
460 |
|
| Accounts receivable |
|
560 |
|
|
360 |
|
| Inventory |
|
760 |
|
|
560 |
|
| Property, plant, and equipment (net) |
|
1,600 |
|
|
1,700 |
|
| |
|
|
|
|
|
|
|
$ |
3,480 |
|
$ |
3,080 |
|
| |
|
|
|
|
|
|
| Liabilities and Shareholders’ Equity |
|
|
|
|
|
|
| Current liabilities |
$ |
860 |
|
$ |
610 |
|
| Bonds payable |
|
1,200 |
|
|
1,200 |
|
| Paid in capital |
|
560 |
|
|
560 |
|
| Retained earnings |
|
860 |
|
|
710 |
|
| |
|
|
|
|
|
|
|
$ |
3,480 |
|
$ |
3,080 |
|
| |
|
|
|
|
|
|
|
|
|
|
Calculate the following ratios for 2013. (Do not round intermediate calculations. Consider 365 days a year. The expected format for rounding is presented in each row of the table.)
Inventory turnover ratio (#.#) _____ times
Average days in inventory (#.##) ______ days
|
Receivables turnover ratio (#.#) _________ times
Average collection period (#.##) ___________ days
Asset turnover ratio (#.##) ______ times
Profit margin on sales (#.##)
Return on assets (#.##) _____
Return on shareholders’ equity (#.#) _____
equity multiplier (#.##) _____________ times
return on shareholders’ equity (using the DuPont framework) (#.#) ____ |
| |
|
