Problem 1:
If Newton Manufacturers has an accounts receivable turnover of 4.8 times and net sales of $7,812,379, what would its receivables be? (Round answer to nearest dollar, e.g. 5,675.)
Accounts receivables $
Problem 2:
Sorenson Inc. has sales of $3,112,489, a gross profit margin of 23.1 percent, and inventory of $833,145. What are the company's inventory turnover ratio and days' sales in inventory? (Use 365 days for calculation. Round inventory turnover ratio to 3 decimal places, e.g. 12.555 and days in inventory to 1 decimal places, e.g. 12.5.)
Sorenson's inventory turnover ratio is ___
times and its days' sales in inventory is ___
days.
Problem 3:
Norton Company has a debt-to-equity ratio of 1.65, ROA of 11.3 percent, and total equity of $1,322,796. What are the company's equity multiplier, debt ratio, and ROE? (Round answers to 2 decimal places, e.g. 12.55 or 12.55%.)
The company's equity multiplier is ___
, its debt ratio is___
, and its ROE is___
Problem 4:
Lemmon Enterprises has a total asset turnover of 2.1 and a net profit margin of 7.5%. If its equity multiplier is 1.9, what is the ROE for Lemmon Enterprises? (Round answer to 2 decimal places, e.g.12.25%.)
Problem 5:
Chisel Corporation has 3 million shares outstanding at a price per share of $3.25. If the debt-to-equity ratio is 1.7 and total book value of debt equals $12,400,000, what is the market-to-book ratio for Chisel Corporation? (Round answer to 2 decimal places, e.g.12.25.)
Problem 6:
Lambda Corporation has current liabilities of $450,000, a quick ratio of 1.8, inventory turnover of 5.0, and a current ratio of 3.5. What is the cost of goods sold for Lambda Corporation? (Round answer to nearest whole dollar, e.g. 5,675.)
Problem 7:
Norwood Corp. currently has accounts receivable of $1,223,675 on net sales of $6,216,900. If Norwood Corp.'s management wants to reduce the DSO to an industry average of 56.3 days and its net sales are expected to decline by about 12 percent, what would be the new level of receivables? (Use 365 days for calculation. Round answer to nearest dollar, e.g. 5,675.)
Problem 8:
Conseco, Inc., has a debt ratio of 0.56. What are the company's debt-to-equity ratio and equity multiplier? (Round your answers to 2 decimal places, e.g.12.25.)
Problem 9:
Procter & Gamble reported the following information for its fiscal year end: On net sales of $51.407 billion, the company earned net income after taxes of $6.481 billion. It had a cost of goods sold of $25.076 billion and EBIT of $9.827 billion. What are the company's gross profit margin, operating profit margin, and net profit margin? (Round answers to 1 decimal place, e.g.12.5%.)
Gross profit margin %
Operating profit margin %
Net profit margin %
Problem 10:
Xtreme Sports Innovations has disclosed the following information:
EBIT = $25,664,300
Net income = $13,054,000
Net sales = $83,125,336
Total debt = $20,885,753
Total assets = $71,244,863
Compute the following ratios for this firm using the DuPont identity: debt-to-equity ratio, EBIT ROA, ROA, and ROE. (Round answers to 2 decimal places, e.g.12.55 or 12.55%.)
Problem 11:
Cisco Systems had net income of $4.401 billion and, at year end, 6.735 billion shares outstanding. In addition, the company's EBITDA was $6.834 billion and its share price was $22.36. Compute the firm's price earnings ratio and the price-EBITDA ratio. (Round answers to 2 decimal places, e.g. 12.55.)
Problem 12:
Grossman Enterprises has an equity multiplier of 2.6 times, total assets of $2,312,000, an ROE of 14.8 percent, and a total asset turnover ratio of 2.8 times. Calculate the firm's sales and ROA. (Round sales to nearest dollar, e.g. 5,675 and ROA answer to 2 decimal places, e.g. 15.25%.)
Problem 13:
For the year ended June 30, 2013, Northern Clothing Company has total assets of $87,631,181, ROA of 11.67 percent, ROE of 21.19 percent, and a net profit margin of 11.59 percent. What are the company's net income and net sales? Calculate the firm's debt-to-equity ratio. (Round net income and net sales to the nearest dollar, e.g. 25 and Round debt-to-equity to 1 decimal place, e.g. 15.2%.)
Problem 14:
The following are the financial statements for Nederland Consumer Products Company for the fiscal year ended September 30, 2013.
| Nederland Consumer Products Company |
| Income Statement for the Fiscal Year |
| Ended September 30, 2013 |
| Net sales |
|
$51,407 |
| Cost of products sold |
|
25,076 |
| Gross margin |
|
$26,331 |
| Marketing, research, administrative exp. |
|
15,746 |
| Depreciation |
|
758 |
| Operating income (loss) |
|
$9,827 |
| Interest expense |
|
477 |
| Earnings (loss) before income taxes |
|
$9,350 |
| Income taxes |
|
2,869 |
| Net earnings (loss) |
|
$6,481 |
| Nederland Consumer Products Company |
| Balance Sheet as of September 30, 2013 |
| Assets: |
|
Liabilities and Equity: |
| Cash and marketable securities |
|
$5,469 |
|
Accounts payable |
|
$3,617 |
| Investment securities |
|
423 |
|
Accrued and other liabilities |
|
7,689 |
| Accounts receivable |
|
4,062 |
|
Taxes payable |
|
2,554 |
| Total inventories |
|
4,400 |
|
Debt due within one year |
|
8,287 |
| Deferred income taxes |
|
958 |
|
|
|
|
| Prepaid expenses & other receivables |
|
1,803 |
|
|
|
|
| Total current assets |
|
$17,115 |
|
Total current liabilities |
|
$22,147 |
| Property, plant, and equipment, at cost |
|
25,304 |
|
Long-term debt |
|
12,554 |
| Less: Accumulated depreciation |
|
11,196 |
|
Deferred income taxes |
|
2,261 |
| Net property, plant, and equipment |
|
$14,108 |
|
Other non-current liabilities |
|
2,808 |
| Net goodwill & other intangible assets |
|
23,900 |
|
Total liabilities |
|
$39,770 |
| Other non current assets |
|
1,925 |
|
Convertible Class A preferred stock |
|
1,526 |
| |
|
|
|
Common stock |
|
2,141 |
| |
|
|
|
Retained earnings |
|
13,611 |
| |
|
|
|
Total stockholders' equity (deficit) |
|
$17,278 |
| Total assets |
|
$57,048 |
|
Total liabilities and equity |
|
$57,048 |
Calculate all the ratios, for which industry figures are available below, for Nederland and compare the firm's ratios with the industry ratios. (Round current ratio, quick ratio, debt ratio, long term debt ratio answers to 2 decimal places, e.g. 15.25 and other answers to 1 decimal place, e.g.15.5 or 15.5%.)
Problem 15:
The following are the financial statements for Nederland Consumer Products Company for the fiscal year ended September 30, 2013.
Using the DuPont identity, calculate the return on equity for Nederland, after calculating the ratios that make up the DuPont identity. (Round your answers to 2 decimal places, e.g.12.50 or 12.50%.)
Problem 16:
Recreational Supplies Co. has net sales of $11,655,000, an ROE of 17.64 percent, and a total asset turnover of 2.89 times. If the firm has a debt-to-equity ratio of 1.43, what is the company's net income? (Round intermediate calculations to 2 decimals, e.g. 12.25 and final answer to 2 decimal places , e.g. 12.25.)
Problem 17:
Modern Appliances Corporation has reported its financial results for the year ended December 31, 2013.
Using the information from the financial statements, complete a comprehensive ratio analysis for Modern Appliances Corporation. (Round your answers to 2 decimal places , e.g.12.25 or 12.25%. Use 365 days for calculation.)
Attachment:- problem week.xlsx