From the given Statement of Financial Position and Income statement, solve for the following: 1) Compute the FINANCIAL ratios that measure: c) Operating Activity -Days Sales in Receivable -Days in Inventory d) Profitability -Earnings per Share -Return on Asset -Return on Equity -Operating Profit Margin -Net Profit Margin 2) Analyze, interpret, and draw conclusions based on the results of your computations.

Intermediate Accounting: Reporting And Analysis
3rd Edition
ISBN:9781337788281
Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach
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From the given Statement of Financial Position and Income statement, solve for the following:

1) Compute the FINANCIAL ratios that measure:

   c) Operating Activity

        -Days Sales in Receivable

        -Days in Inventory

d) Profitability

        -Earnings per Share

        -Return on Asset

        -Return on Equity

        -Operating Profit Margin

        -Net Profit Margin

2) Analyze, interpret, and draw conclusions based on the results of your computations.

AYBECI COMPANY
Comparative Statement of Financial Position
December 31
(in Thousand Dollars)
2020
2019
2018
ASSETS
Current Assets
Cash and Cash Equivalents
Short term Investments
Trade Receivables, net of $30.000 allowance
Note Receivable – related party
Other Receivables
Inventory
Prepaid Insurance
Total Current Assets
Non-Current Asset
Property, Plant and Equipment
Less Accumulated Depreciation
Total non-current Asset
TOTAL ASSET
12,628
12,000
529,949
18,941
80.532
252,567
7,500
914,117
91.100
193,230
485,000
12.325
11,254
12.000
510.435
21.543
212,515
7,500
1.001,670
252,567
7,500
815.299
209.330
87.260
122.070
1.123.740
209,330
75,332
133,998
1.048,115
209.330
64.034
145,296
960,595
LIABILITIES AND SHAREHOLDERS EQUITY
Current Liabilities
Accounts Payable
Accrued Expense
Notes Payable
Line of Credit
Current Portion of Long Term Debt
148.000
2,025
22,325
123.000
36,000
331,350
154,021
2,500
21,300
145.000
36.000
358,821
135,000
2,500
21.750
167.000
36.000
362,250
Total Current Liabilities
Non-Current Liabilities
Long Term Debt
Total Liabilities
114.686
446.036
117,343
476,164
117.345
479,595
Shareholders' Equity
Ordinary Share. $1 par value
Premium on Ordinary Shares
Retained Earnings
Total Shareholders' Equity
100.000
50,000
527.704
677,704
100,000
50.000
421.951
571,951
100.000
50.000
331.000
481.000
AYBECI CORPORATION
Comparative Income Statement
For the year ended December 31
(in Thousand Dollars)
2020
2019
1.986.456
1.187.652
798.804
556.732
242.072
Net Sales
Less: Cost of Sales
Gross Income
Less: Other Operating Expense
Operating Income
Less: Other Expense
Interest
Other Expense
Net Income before Taxes
| Less: Income Tax
NET INCOME AFTER TAXES
2.013.225
1.201.000
812.225
562.705
249.520
16.383
4,884
228.253
22.500
205.753
16.453
2,600
223.019
22,300
200.719
Transcribed Image Text:AYBECI COMPANY Comparative Statement of Financial Position December 31 (in Thousand Dollars) 2020 2019 2018 ASSETS Current Assets Cash and Cash Equivalents Short term Investments Trade Receivables, net of $30.000 allowance Note Receivable – related party Other Receivables Inventory Prepaid Insurance Total Current Assets Non-Current Asset Property, Plant and Equipment Less Accumulated Depreciation Total non-current Asset TOTAL ASSET 12,628 12,000 529,949 18,941 80.532 252,567 7,500 914,117 91.100 193,230 485,000 12.325 11,254 12.000 510.435 21.543 212,515 7,500 1.001,670 252,567 7,500 815.299 209.330 87.260 122.070 1.123.740 209,330 75,332 133,998 1.048,115 209.330 64.034 145,296 960,595 LIABILITIES AND SHAREHOLDERS EQUITY Current Liabilities Accounts Payable Accrued Expense Notes Payable Line of Credit Current Portion of Long Term Debt 148.000 2,025 22,325 123.000 36,000 331,350 154,021 2,500 21,300 145.000 36.000 358,821 135,000 2,500 21.750 167.000 36.000 362,250 Total Current Liabilities Non-Current Liabilities Long Term Debt Total Liabilities 114.686 446.036 117,343 476,164 117.345 479,595 Shareholders' Equity Ordinary Share. $1 par value Premium on Ordinary Shares Retained Earnings Total Shareholders' Equity 100.000 50,000 527.704 677,704 100,000 50.000 421.951 571,951 100.000 50.000 331.000 481.000 AYBECI CORPORATION Comparative Income Statement For the year ended December 31 (in Thousand Dollars) 2020 2019 1.986.456 1.187.652 798.804 556.732 242.072 Net Sales Less: Cost of Sales Gross Income Less: Other Operating Expense Operating Income Less: Other Expense Interest Other Expense Net Income before Taxes | Less: Income Tax NET INCOME AFTER TAXES 2.013.225 1.201.000 812.225 562.705 249.520 16.383 4,884 228.253 22.500 205.753 16.453 2,600 223.019 22,300 200.719
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