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Assets: Cash Accounts Receivable Merchandise Inventory Plant and Equipment 12,300 36,000 60,800 151,000 Liabilities and Equity: Accounts Payable Accrued expenses Other current liabilities Long-term debt 10% Preference share capital Ordingry shgre canital

Assets: Cash Accounts Receivable Merchandise Inventory Plant and Equipment 12,300 36,000 60,800 151,000 Liabilities and Equity: Accounts Payable Accrued expenses Other current liabilities Long-term debt 10% Preference share capital Ordingry shgre canital

Fundamentals of Financial Management (MindTap Course List)
Fundamentals of Financial Management (MindTap Course List)
15th Edition
ISBN:9781337395250
Author:Eugene F. Brigham, Joel F. Houston
Publisher:Eugene F. Brigham, Joel F. Houston
Chapter4: Analysis Of Financial Statements
Section: Chapter Questions
Problem 24P: Income Statement for Year Ended December 31, 2018 (Millions of Dollars) Net sales 795.0 Cost of...
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Analyze the company’s strengths and weaknesses in terms of liquidity, solvency and profitability.
You have been supplied with the following data for Royal Plastic Limited and its industry averages. Balance Sheet March 31, 2019 Assets: Cash Accounts Receivable Merchandise Inventory Plant and Equipment Liabilities and Equity: Accounts Payable Accrued expenses Other current liabilities Long-term debt 10% Preference share capital Ordinary share capital Retained Earnings 12,300 36,000 60,800 151,000 31,500 1,200 26,000 34,000 40,000 100,000 27,400 Total Assets P260,100 Total Liabilities and Equity P260,100
Transcribed Image Text:You have been supplied with the following data for Royal Plastic Limited and its industry averages. Balance Sheet March 31, 2019 Assets: Cash Accounts Receivable Merchandise Inventory Plant and Equipment Liabilities and Equity: Accounts Payable Accrued expenses Other current liabilities Long-term debt 10% Preference share capital Ordinary share capital Retained Earnings 12,300 36,000 60,800 151,000 31,500 1,200 26,000 34,000 40,000 100,000 27,400 Total Assets P260,100 Total Liabilities and Equity P260,100
Income Statement March 31, 2019 Sales Less: Cost of goods sold Selling expenses Administrative expenses Research and development exp. Interest expense Earnings before taxes Less: Income tax (35%) Net income Dividends paid to equity holders 225,000 152,500 29,500 14,800 6.500 2.900 206.200 18,800 6.580 12.220 5.000 Financial Ratios Industry 2.2:1 2.8 times 56 days 45% Company 1.86 2.51 times 58 days Current ratio Stock turnover Collection period Debt to Equity Interest coverageratio Asset turnover Net profit ratio (before tax) Return on Equity 55% 7.48 times 0.58 times 8.36% 5.45% 10 times 1.35 times 11.9% 10.9%
Transcribed Image Text:Income Statement March 31, 2019 Sales Less: Cost of goods sold Selling expenses Administrative expenses Research and development exp. Interest expense Earnings before taxes Less: Income tax (35%) Net income Dividends paid to equity holders 225,000 152,500 29,500 14,800 6.500 2.900 206.200 18,800 6.580 12.220 5.000 Financial Ratios Industry 2.2:1 2.8 times 56 days 45% Company 1.86 2.51 times 58 days Current ratio Stock turnover Collection period Debt to Equity Interest coverageratio Asset turnover Net profit ratio (before tax) Return on Equity 55% 7.48 times 0.58 times 8.36% 5.45% 10 times 1.35 times 11.9% 10.9%
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