Estaiban's Taco Shack
Current Income Statement
Gross Sales $430,000 100%
Ret/Allowances 20,000 5%
Net Sales $410,000 95%
Cost of Goods Sold $150,500 35%
Gross Profit $259,500 60%
Operating Expenses
Payroll $113,200 26%
Rent 50,100 11%
Debt Service 21,500 6%
Advertising 12,900 3 %
Insurance 8,600 2%
Maintenance 8,600 2%
Total Op Exp. $214,900 50%
Net Profit before taxes or (EBT) $ 44,600 10 %
Estaiban's Taco Shack
Current Balance Sheet
Assets Liabilities
Current Assets Current Liabilities
Cash $30,300 Payroll Payable $7,000
Inventory $25,100 Taxes Payable $9,000
A/R $ 4,100 A/P $21,400
Total $59,500 S/T Loan $3,700
Total $41,100
Fixed Liabilities
Fixed Assets Mortgage $85,000
Land $135,000 L/T Loan $ 14,500
Buildings $ 72,000 Total $99,500
Fixtures $ 20,700 Total Liabilities $140,600
Equipment $ 35,700 Net Worth $182,300
Total $263,400 Liabilities + Net Worth $322,900
Total Assets $322,900
Given the above Income statement and balance sheet, answer the following questions:
Please show your calculations for each ratio.
- Profitability Ratios: EBT = _______%, ROA = ______%, RONW = ______%
- Activity Ratios: Inventory Turnover = _________, Asset Turnover = _______
- Liquidity Ratios: Net Working Capital = $____________, Current Ratio _____, Quick Ratio = ___________
- Debt Ratios: Debt Ratio = ____________, Leverage Ratio = ____________