Accounting for Managers
Directions: Be sure to make anelectronic copy of your answer before submitting it to Ashworth Collegefor grading.
Financial StatementAnalysis
The following information relates toHarris Corporation.
|
Account
|
Current year
|
Prior year
|
|
Net sales (all credit)
|
$520,125
|
$499,500
|
|
Cost of goods sold
|
$375,960
|
$353,600
|
|
Gross profit
|
$144,165
|
$145,900
|
|
Income from operations
|
$ 95,500
|
$ 79,900
|
|
Interest expense
|
$ 23,500
|
$ 19,500
|
|
Net income
|
$ 57,600
|
$ 51,600
|
|
Cash
|
$ 30,600
|
$ 15,900
|
|
Accounts receivable, net
|
$ 33,800
|
$ 23,200
|
|
Inventory
|
$ 42,000
|
$ 30,300
|
|
Prepaid expenses
|
$ 2,000
|
$ 1,500
|
|
Total current assets
|
$ 108,400
|
$ 70,900
|
|
Total long-term assets
|
$ 62,000
|
$ 38,000
|
|
Total current liabilities
|
$ 46,000
|
$ 41,600
|
|
Total long-term liabilities
|
$ 20,000
|
$ 22,700
|
|
Common stock, no par,
3,000 shares, value $50/share
|
$ 30,000
|
$ 30,000
|
Required:
a. What is the acid-test ratio forthe current year?
b. What is the inventory turnoverfor the current year?
c. What is days' sales in receivablesfor the current year?
d. What is the book value pershare of common stock for the current year?
e. What is the price-earningsratio for the current year?
f. What is the rate of return ontotal assets for the current year?
g. What is thetimes-interest-earned ratio for the current year?
h. What is the current ratio forthe current year?