Question - Changes in Various Ratios
Presented below is selected information for Brimmer Company:
|
|
2016
|
2015
|
|
Sales revenue
|
$920,000
|
$840,000
|
|
Cost of goods sold
|
575,000
|
545,000
|
|
Interest expense
|
20,000
|
20,000
|
|
Income tax expense
|
27,000
|
30,000
|
|
Net income
|
61,000
|
52,000
|
|
Cash flow from operating activities
|
65,000
|
55,000
|
|
Capital expenditures
|
45,000
|
45,000
|
|
Accounts receivable (net), December 31
|
126,000
|
120,000
|
|
Inventory, December 31
|
196,000
|
160,000
|
|
Stockholders' equity, December 31
|
450,000
|
400,000
|
|
Total assets, December 31
|
750,000
|
675,000
|
Required -
Calculate the following ratios for 2016. The 2015 results are given for comparative purposes.
1. Gross profit percentage
2. Return on assets
3. Return on sales
4. Return on common stockholders' equity
5. Accounts receivable turnover
6. Average collection period
7. Inventory turnover
8. Times-interest-earned ratio
9. Operating-cash-flow-to-capital-expenditures ratio