Calculate the firm’s Liquidity Ratios (Current Ratio and Quick Ratio), Profitability Ratios (for Net Income as well as EBIT), Efficiency (Total Assets Turnover, as well as A/C Receivables Turnover and Days in Accounts Receivables, Inventory Turnover Ratio and Days in Inventory), Debt Usage (Debt to Equity and Coverage Ratio), and Market-Value Based Ratios. For some ratios you can calculate only one value (for example, Profitability or Interest Coverage), and for some ratios you can calculate two values (one at the beginning and the other at the end of the year). Explain all calculations. Income Statement forYearNet salesCOGSDepreciationEBITInterestTaxable incomeTaxesNet incomeBalance SheetCashAccounts receivableInventoryNet fixed assetsTotal assetsAccounts payableLong-term debtCommon stock Par Value($1 per share)Retained EarningsTotal Liabilities & Equity$827,500611,80023,100$192,6009,700$182,9006,200176,700Beginning of Year$ 38,20091,400203,900516,100849,600$136,100329,50075,000309,000$849,600End of Year$43,70086,150214,600537,950$882,400104,300298,20082,000397,900882,400Shares were trading at $10 per share at the beginning of the year, and at $12.50 atthe end of the year.

According to the question, we need to determine the financial ratios of a company. Financial…

Answered: Calculate the firm’s Liquidity Ratios…

Managerial Accounting

15th Edition

ISBN:9781337912020

Author:Carl Warren, Ph.d. Cma William B. Tayler

Publisher:Carl Warren, Ph.d. Cma William B. Tayler

Chapter16: Financial Statement Analysis

Section: Chapter Questions

Problem 4PB

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Calculate the firm’s Liquidity Ratios (Current Ratio and Quick Ratio), Profitability Ratios (for Net Income as well as EBIT), Efficiency (Total Assets Turnover, as well as A/C Receivables Turnover and Days in Accounts Receivables, Inventory Turnover Ratio and Days in Inventory), Debt Usage (Debt to Equity and Coverage Ratio), and Market-Value Based Ratios. For some ratios you can calculate only one value (for example, Profitability or Interest Coverage), and for some ratios you can calculate two values (one at the beginning and the other at the end of the year). Explain all calculations.

Income Statement for
Year
Net sales
COGS
Depreciation
EBIT
Interest
Taxable income
Taxes
Net income
Balance Sheet
Cash
Accounts receivable
Inventory
Net fixed assets
Total assets
Accounts payable
Long-term debt
Common stock Par Value
($1 per share)
Retained Earnings
Total Liabilities & Equity
$827,500
611,800
23,100
$192,600
9,700
$182,900
6,200
176,700
Beginning of Year
$ 38,200
91,400
203,900
516,100
849,600
$136,100
329,500
75,000
309,000
$849,600
End of Year
$43,700
86,150
214,600
537,950
$882,400
104,300
298,200
82,000
397,900
882,400
Shares were trading at $10 per share at the beginning of the year, and at $12.50 at
the end of the year.

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