Question

Use the below information to answer the following question.

Income Statement
For the Year
Net sales $631,000
COGS 442,220
Depreciation 28,100
EBIT $160,700
Interest 14,900
Taxable income $145,800
Taxes 49,600
Net income 96,200
Balance Sheet
Beginning of Year End of Year
Cash $ 38,200 $43,700
Accounts receivable91,400 86,150
Inventory 203,900 214,600
Net fixed assets 516,100 537,950
Total assets 849,600 $882,400
Accounts payable $136,100 104,300
Long-term debt 329,500 298,200
Common stock ($1 par value)75,000 82,000
Retained earnings 309,000 397,900
Total Liab. & Equity $849,600 882,400
What is the quick ratio at the end of the year?
How many days of sales are in receivables at year-end?
What is the price-sales ratio if the market price is $43.20 per share? (Use end-of-year values)?
What is debt-equity ratio at year-end?
What is the return on equity using year-end values?
What is the amount of the dividends paid during the year?
What is the amount of the cash flow from investment activity for the year?
What is the net working capital to total assets ratio at year-end?
How many dollars of sales are being generated from every dollar of net fixed assets? (Use year-end values)?
What is the times interest earned ratio for the year?
What is the net cash flow to stockholders for the year?

Answer 1

Follows are the solution to the given point:

Step-by-step explanation:

The formula for calculating the Quick Ratio:

`\text{Quick Ratio} = \frac{\text{Quick Assets}}{\text{Current Liabilities}}`

`= (43700+86150)/(104300)\\\\=( 129850)/(104300) \\\\= 1.24`

`\text{Sales days Receivable at end of year} = (\frac{\text{Account receivables at the end}}{\text{Gross sales by loan}} ) * \text{number of days}`
`= (86150)/(631000) * 365 \\\\ = 49.833 \\\\ = 50\ days`

`\text{Sales price ratio} = \frac{\text{Sales per share price}}{\text{ Sales Share price}}`

`=(43.20)/((63100)/(82000))\\\\ = (43.20)/(0.769)\\\\ = 5.61`

`\text{total equity Debt} = \frac{ \text{Complete Liabilities}}{\text{Stockholders}}`

`= (882400)/((397900+82000))\\\\ = (882400)/((479,900))\\\\ = (882400)/((479,900))\\\\= 1.838`

`\text{Equity Return} = \frac{\text{Net Sales}}{\text{Equity of Shareholder}} * 100`

`= (96200)/((82000+397900)) * 100 \\\\ = (96200)/((479900)) * 100 \\\\= 0.2004 * 100\\\\= 200.4 \ \%`

Dividends received throughout the year = Restored earnings opening + Net Sales -Closing of restored profits

`= 309000 + 96200 - 397900 \\\\= 7300`