Balance Sheet Folder Factory, Inc. December 31, 2014 and 2015 2015 2014 Assets Cash $ 1,000 $ 500 Accounts receivable 5,000 4,500 Inventory 7,000 6,000 Total current assets $13,000 $11,000 Gross fixed assets $20,000 $15,000 Less: Accumulated depreciation 10,000 9,000 Net fixed assets $10,000 $ 6,000 Total assets $23,000 $17,000 Liabilities and stockholders’ equity Accounts payable $ 2,000 $ 1,500 Notes payable 3,000 2,500 Accruals 500 500 Long-term debt 10,000 6,000 Common stock at par ($1 par) 500 500 Paid-in capital in excess of par 5,500 5,500 Retained earnings 1,500 500 Total liabilities and stockholders’ equity $23,000 $17,000 Income Statement Folder Factory, Inc. for the Year Ended December 31, 2015 Sales $40,000 Cost of goods sold 21,000 Gross profits $10,000 Operating expenses 13,000 Operating profits $ 6,000 Interest expense 2,000 Net profits before taxes $ 4,000 Taxes (40%) 1,600 Net profits after taxes $ 2,400 Other information (2015): Depreciation Expense $1000 Tax rate 40% Operating Profits = Earnings before interest and taxes
a. How much depreciation accumulated from 2014 to 2015?
b. What was their inventory turnover ratio for 2015?
c. Was their debt ratio for 2015 the same, better or worse than 2014?
Show me your ratio calculations to support your position.
d. What was their "TIE" (times interest earned) for 2015?
e. How many shares of common stock did they sell in 2015? How do you know?
f. What is their quick ratio?
g. What is their gross profit margin?
h. How many shares are outstanding in 2015?
i. What was their total asset turnover in 2015?
j. Was the company profitable in 2015?