Cherry Company Comparative Income Statements (000's omitted) For the Years Ended December 31, 20x5 and 20x4 20x5 20x4 Net Sales $ 360 $ 290 Cost of Goods Sold 255 172 Gross Profit 105 118 Operating Expenses 84 65 Operating Income 21 53 Interest Expense 10 12 Income Before Income Taxes 11 41 Income Taxes 4 16 Net Income $ 7 $ 25 Cherry Company Comparative Balance Sheets (000's omitted) December 31, 20x5 and 20x4 Assets: 12/31/20x5 12/31/20x4 Current Assets $ 48 $ 110 Property, Plant, and Equipment (net) 285 245 Total Assets $ 333 $ 355 Liabilities and Stockholders' Equity: Current Liabilities 36 54 Long-Term Liabilities 175 123 Total Liabilities 211 177 Stockholders' Equity 122 178 Total Liabilities and Stockholders' Equity $ 333 $ 355 Common Stock: 20x5 20x4 Market Price Per Share at 12/31 $ 19.80 $ 28.40 Cash Dividends Per Share $ 2.80 $ 2.20 Problem 5 - Answers here: use 2 decimal places Ratios Summary 20x5 20x4 Current ratio 1.33 2.04 Debt to Equity Ratio 0.63 0.50 Net Profit Margin Ratio 1.94% 8.62% Gross Profit Ratio 29.17% 40.70% Return on Equity 5.70% 14.04% Dividend Yield Ratio 14.14% 7.75% 1- Could you provide some comments on the Cherry Co overall performance?

Cherry Company Comparative Income Statements (000's omitted) For the Years Ended December 31, 20x5 and 20x4 20x5 20x4 Net Sales $ 360 $ 290 Cost of Goods Sold 255 172 Gross Profit 105 118 Operating Expenses 84 65 Operating Income 21 53 Interest Expense 10 12 Income Before Income Taxes 11 41 Income Taxes 4 16 Net Income $ 7 $ 25 Cherry Company Comparative Balance Sheets (000's omitted) December 31, 20x5 and 20x4 Assets: 12/31/20x5 12/31/20x4 Current Assets $ 48 $ 110 Property, Plant, and Equipment (net) 285 245 Total Assets $ 333 $ 355 Liabilities and Stockholders' Equity: Current Liabilities 36 54 Long-Term Liabilities 175 123 Total Liabilities 211 177 Stockholders' Equity 122 178 Total Liabilities and Stockholders' Equity $ 333 $ 355 Common Stock: 20x5 20x4 Market Price Per Share at 12/31 $ 19.80 $ 28.40 Cash Dividends Per Share $ 2.80 $ 2.20 Problem 5 - Answers here: use 2 decimal places Ratios Summary 20x5 20x4 Current ratio 1.33 2.04 Debt to Equity Ratio 0.63 0.50 Net Profit Margin Ratio 1.94% 8.62% Gross Profit Ratio 29.17% 40.70% Return on Equity 5.70% 14.04% Dividend Yield Ratio 14.14% 7.75% 1- Could you provide some comments on the Cherry Co overall performance?

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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Problem 5 - Ratio Analysis


Cherry Company
Comparative Income Statements (000's omitted)
For the Years Ended December 31, 20x5 and 20x4
	20x5	20x4
Net Sales	$ 360	$ 290
Cost of Goods Sold	255	172
Gross Profit	105	118
Operating Expenses	84	65
Operating Income	21	53
Interest Expense	10	12
Income Before Income Taxes	11	41
Income Taxes	4	16
Net Income	$ 7	$ 25

Cherry Company
Comparative Balance Sheets (000's omitted)
December 31, 20x5 and 20x4
Assets:	12/31/20x5	12/31/20x4
Current Assets	$ 48	$ 110
Property, Plant, and Equipment (net)	285	245
Total Assets	$ 333	$ 355

Liabilities and Stockholders' Equity:
Current Liabilities	36	54
Long-Term Liabilities	175	123
Total Liabilities	211	177
Stockholders' Equity	122	178
Total Liabilities and Stockholders' Equity	$ 333	$ 355

Common Stock:	20x5	20x4
Market Price Per Share at 12/31	$ 19.80	$ 28.40
Cash Dividends Per Share	$ 2.80	$ 2.20


Problem 5 - Answers here: use 2 decimal places
Ratios Summary	20x5	20x4
Current ratio	1.33	2.04
Debt to Equity Ratio	0.63	0.50
Net Profit Margin Ratio	1.94%	8.62%
Gross Profit Ratio	29.17%	40.70%
Return on Equity	5.70%	14.04%
Dividend Yield Ratio	14.14%	7.75%

1- Could you provide some comments on the Cherry Co overall performance?

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