1- Complete a schedule that reflects a ratio analysis of (2017,2018,2019,2020 ). Compute the ratios discussed inthe chapter.(Profitability, Activity Ratios, Tests of Liquidity, Tests of Solvency and Market Tests ?2-Based on the data given,prepare a comparative written evaluation of the ratio analyses (and any other available information)and give your recommended choice with the supporting explanation. FY20 Financials ReviewIncome StatementFY17FY18FY19FY20Revenue2,5673,1602,9722,410Cost of goods sold1,9332,4372,4822,109Cash Gross profit634723489302GPM25%23%16%13%127135125119SG&A Expenses507588364183EBITDAEBITDA Margin20%19%12%8%Provisions-8Other income-6108235248Depreciation & Amortization261247266350104-64EBITEBIT Margin10%11%3%-3%-31466-12Foreign exchangeLoss/gain on disposal of PPEFinance cost, net10310613380Net Profit Before Tax19424137-131NPBT Margin8%8%1%-5%Deferred tax-3-15Income tax expense-21Net Profit21723430-116NPM8%7%1%-5%FY20 Financials ReviewBalance SheetFY17FYISFY19FY20AasctaNon-curent AnsetsPropeny plant and espipment, netProjects under conieructionIntaghle asInvestment in ubnidianes2156245723021762494.4521525447Total Non-curent Asset3,03929462726244Current AncisInventory253156170Dehtors and uther dehit balancesDa from elated partics1691041251721Cash and hank halances11716552Total Current Ansetn457637363369Total Asscts3,4963,009Current LiabilitiesIenisions161217Current an liabilities13Trade payalles and other credie halancesDar related partienHoenwings - shon tem ponions55T846197.45H152439Short-tem liahileic11412512Total Current LiabilitiesL1551,2771,041,00Net (Deficit) Surplus in Wurking Capital4/98-641-721710Total Invested Funds2,3422051,773EquityPail up capitalLegal reseneRetained eamings7577S77577572121125525833734216438Total EquityNon-curent LiabiliticsHomwings - kong term purtikinsDefemal income tas liabileyLang-tenn lablitiesTotal Non-curent Liahilities1,3051311,1761,05341041234317100121,037975829720Total Equity and Liabilities3,4963.583 109 2AS3 FY20 Financials ReviewBalance SheetFY17FY18FY19FY20AsctaNon-current AssetsI'rpeny plant and epipment, netPeiects under cotractionIntagble act2,15624372,176249345205254Investment in subsidianes47Tutal Non-cunent Assets2,9462,7262,44Current AnsetaInventury253212156170Debtoes and other debit balances7816104125Dae fmm elated panies201723Cah and hank halances11716552Total Current Assets457637363Total Assets3,463,5633.0892,853Current LiabilitiesProvision16101217Curment tas lishilitiesTrale payables and other ede halancesDue n elated partiesHornwing shut em pertionShoet-tem liabileies13559619456351153411412512Total Current LiahilisiesL1551,277LO41,080Net (Deficit) Surplus in Working Capital698641-721-710Tutal Invested Funde2.3422.3062,0051,773EquityPaid up capital757757757757Legal reserve210251255258Retained camings33734216435Total EquiryNin current LiabilitiesBomwing kang tem portionsDefemud incme tas liabiley1,051,311,176L053619492387336343337322Lang-tenn lablitis10012Total Non-cunent LiabilitiesLA37975829720Total Equity and Liabilities3.4961.SKI 109 2.8533,089FY20 Financials ReviewCash Flow StatementMN EGPFYTFYISFY19FY20Cash luwa fnm.upetating activitiesNet pnifit hefore tax19424137-131Interst income5Interest espenseDeperciation espemeAmortization of itangble isetsGain fnm sale of peiperty plant and espuipment11184197515141Dividends from jint ventureNet Forcign eschange (Pifi) / koPruvnitn-22-37-17-52Changes in working capital199484258104Debeors und other debit hulances2322-36Imentuey, netTrade payables and other credit balancesDue fnm nlaned partiesTax pailDue to rtated parties2453126-14561461692461194Net cash from operating activitiesCash flows from investing activitienPruveeds fom dividends fem jnint vennae411543553-203Pruceods from sale of assesInterrst ncomePurchane of peiperty, plant and equpmentAdditions in peuies under cunstruction-13-2533242-3Paymenes under long-term investments-1610Net cash flows ed in investing activities267-127-33Cash flows fnm financing activitiesPaymenes of lieme lahityPayments of bomwings-135-125-1245-72-7HInterest paidDividends paidPruceods from bank oventraftNet cash flows from financing activitiesNet increase (decrease) in cash and cashequivalentsCash and cash cquivaknts at beginning of the yoar205-207-TH522617-21227H-159366-600169-13-7934131117165Cash and cash equivalents at end of the period11716552一

Ratio Analysis The important object of the ratio analysis to measure the strength and weakness which…

Complete a schedule that reflects a ratio analysis of (2017,2018,2019,2020 ). Compute the ratios discussed in the chapter.(Profitability, Activity Ratios, Tests of Liquidity, Tests of Solvency and Market Tests ? 2-Based on the data given, prepare a comparative written evaluation of the ratio analyses (and any other available information) and give your recommended choice with the supporting explanation.

Complete a schedule that reflects a ratio analysis of (2017,2018,2019,2020 ). Compute the ratios discussed in the chapter.(Profitability, Activity Ratios, Tests of Liquidity, Tests of Solvency and Market Tests ? 2-Based on the data given, prepare a comparative written evaluation of the ratio analyses (and any other available information) and give your recommended choice with the supporting explanation.

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...

See similar textbooks

Similar questions

Use the below information to answer the following questions: 20202021Sales$11,573$12,936Depreciation 1661 1736Cost of goods sold 3979 4707Other Expenses 846 924Interest Expense 776 926Cash 6067 6466Accounts Receivables 8034 9427Short-term Notes Payable 1171 1147Long-term debt 20,320 24,696Net fixed assets 50,888 54,273Accounts Payable 4384 4644Tax rate 26% 34%Inventory 14,283 15,288Payout ratio 33% 30% A. Create the Balance Sheets for 2020 & 2021.
Use the below information to answer the following questions: 20202021Sales$11,573$12,936Depreciation 1661 1736Cost of goods sold 3979 4707Other Expenses 846 924Interest Expense 776 926Cash 6067 6466Accounts Receivables 8034 9427Short-term Notes Payable 1171 1147Long-term debt 20,320 24,696Net fixed assets 50,888 54,273Accounts Payable 4384 4644Tax rate 26% 34%Inventory 14,283 15,288Payout ratio 33% 30% A. Create the Income Statements for 2020 and 2021 (including dividends paid and retained earnings).
Inventory (01/10/18)Raw materials 28800Work in progress 37000Finished goods 33600Sales (114000 @c5) 57000Carriage on raw materials 1470General expenses 25200Selling expenses 51840Plant and machinery 250280Land 50000Bank overdraft 32120Retained earnings 816Ordinary share capital 2000008% preference share 22000Goodwill 40000Bad debts 830Trade receivables 36433Discount allowed 1440Sundry payable 56636Trade investment 8840Advertising 2250Return inwards 9000Discount received 1920Carriage outwards 2280Production wages 126000Office salaries 4860Purchases of raw materials 168000Noodles 15000Factory rent 13600Office insurance 40800Depreciation on plant and machinery 4920InventoryRaw materials 35400Work in progress 39120Loose tools 3000Additional informationDuring the year, 129000 pieces were completed. The closing inventory of finished goods is valued at the cost price per nose mask produced.Goods manufactured during the year are to be transferred to the trading account at GHc 390000.Provide…
INCOME STATEMENT Year ended June 30 2022 2021 $'000 $'000Revenue 22450 18675Cost of sales 8475 8055Gross Profit 13975 10620Distribution costs 4245 3120Administrative expenses 1276 2134Selling expenses…
tion 8Income statement for the year ended 31 December, 2019 of KKMTN Ghana Ltd2018 2019ȼ ‘000 ȼ ‘000Turnover 420,000 523,600Cost of sales (330,000) (417,200)Gross profit 89,000 106,400Expenses:Administration 44,600 50,200Selling and distribution 15,400 (60,000) 19,600 (69,800)Profit before interest 29,000 36,600Debenture interest - (2,800)Net profit before tax 29,000 33,800Taxation (8,000) (10,000)Net Profit after tax 21,000 23,800Ordinary dividend paid 8,400 9,250Ordinary shares issued 12 million and trading at ȼ3 each as at yesterday onGSE.You are required to compute the following investment ratios:a). Earnings per shareb). Dividend per sharec). Payout ratiod). Price earnings ratioe). Earnings yield
SCRUMPTIOUS CUPCAKESProfit and loss accountfor the year ended 30 April 20202020£SalesSales 220,000Cost of sales 120,000Gross Profit 100,000ExpensesSalaries 24,000Other Fixed cost 4,800Distribution 3,000Advertising 4,500Rent 13,200AHUtilities 3,600Other Cost 4,00057,100Operating Profit 42,900 SCRUMPTIOUS CUPCAKESBalance Sheetas at 30 April 20202020£Fixed assetsIntangible assets -Tangible assets 35,000Investments -35,000Current assetsStocks 3,000Debtors 10,000Cash at bank and in hand 6,30019,300Written ReportsCreditors: amounts falling duewithin one year (11,300)Net Current Assets 8,000Total assets less currentliabilities 43,000Net Assets 43,000Capital and reservesCalled up share capital 100Profit and loss account 42,900Shareholders' funds 43,000 please calculate the folliwing ratios: Profitability Ratios – Gross Profit Margin, Net Profit Margin and ROCE● Liquidity – Current Test and Acid Test● Gearing● Activity/Performance – Stock Turnover, Debtors’ Collection Period and AssetTurnover…
Income Statement for Year Ended December 31, 2018 (Millions of Dollars) Net sales 795.0 Cost of goods sold 660.0 Gross profit 135.0 Selling expenses 73.5 EBITDA 61.5 Depreciation expenses 12.0 Earnings before interest and taxes (EBIT) 49.5 Interest expenses 4.5 Earnings before taxes (EBT) 45.0 Taxes (40%) 18.0 Net income 27.0 a. Calculate the ratios you think would be useful in this analysis. b. Construct a DuPont equation, and compare the companys ratios to the industry average ratios. c. Do the balance-sheet accounts or the income statement figures seem to be primarily responsible for the low profits? d. Which specific accounts seem to be most out of line relative to other firms in the industry? e. If the firm had a pronounced seasonal sales pattern or if it grew rapidly during the year, how might that affect the validity of your ratio analysis? How might you correct for such potential problems?
17. The income statement of Headland Company is shown below. HEADLAND COMPANYINCOME STATEMENTFOR THE YEAR ENDED DECEMBER 31, 2020 Sales revenue $6,940,000 Cost of goods sold Beginning inventory $1,910,000 Purchases 4,350,000 Goods available for sale 6,260,000 Ending inventory 1,600,000 Cost of goods sold 4,660,000 Gross profit 2,280,000 Operating expenses Selling expenses 450,000 Administrative expenses 710,000 1,160,000 Net income $1,120,000 Additional information: 1. Accounts receivable decreased $390,000 during the year. 2. Prepaid expenses increased $150,000 during the year. 3. Accounts payable to suppliers of merchandise decreased $300,000 during the year. 4. Accrued expenses payable decreased $90,000 during the year. 5. Administrative expenses include depreciation expense of $50,000.…
31. At the end of FY2020, our company reported $100kin Inventory. Over FY2021, we spent another $70kpurchasing Inventory. At the end of FY2021, we reported $80kin Inventory on our Balance Sheet. What was our company's Cost of Goods Sold for FY2021? (a) $70k(b) $90k(c) $110k(d) Not enough information without inventory costing mehod (FIFO, LIFO, etc.) (e) None of the above.
QWC 2016 $000 2017 $000 2018 $000 2019 $000 2020 $000 2021 $000 Current ratio 0.66 0.58 0.96 0.92 1.06 0.83 Quick ratio 0.43 0.37 0.58 0.53 0.49 0.57 Operating cash flow ratio 0.10 0.01 0.01 0.00 0.02 0.07 MMC Current ratio 2.37 2.23 2.07 1.89 2.74 2.16 Quick ratio 0.93 0.95 0.81 0.80 1.36 1.01 Operating cash flow ratio 1.02 0.72 0.96 0.47 0.32 0.52 Please interpret the ratio for both the companies. Not required to explain the theory just interpret the values for the following: 1) Current Ratio 2) Quick Ratio 3) Operating cash flow ratio
THE ATHLETIC ATTICIncome StatementFor the Year Ended December 31, 2024Net sales $8,900,000Cost of goods sold 5,450,000Gross profit 3,450,000Expenses: Operating expenses $1,600,000 Depreciation expense 210,000 Interest expense 50,000 Income tax expense 360,000 Total expenses 2,220,000Net income $1,230,000 THE ATHLETIC ATTICBalance SheetsDecember 31 2024 2023Assets Current assets: Cash $164,000 Accounts receivable 790,000 Inventory 1,405,000 Supplies 110,000Long-term assets: Equipment 1,150,000 Less: Accumulated depreciation (420,000) Total assets $3,199,000 Liabilities and Stockholders' Equity Current liabilities: Accounts payable $115,000 Interest payable 0 Income tax payable 40,000 Long-term liabilities: Notes payable 600,000 Stockholders' equity: Common stock 700,000…
E23.10B (L0 1,4) (Classification of Transactions) Following are selected balance sheet accounts of BioLazer Corp. at December 31, 2020 and 2019, and the increases or decreases in each account from 2019 to 2020. Also presented is selected income statement information for the year ended December 31, 2020, and additional information. Increase Selected balance sheet accounts 2020 2019 (Decrease)AssetsAccounts receivable $154,000 $120,000 $34,000Property, plant, and equipment 631,000 581,000 50,000Accumulated…