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Given are the statements of financial position, income statements, and other pertinent data for ABC Corporation (see previous page). The amounts are historical data for 2018 and 2019 and expected (E) amounts for 2020.           Requirements:           1. Compute the given ratios for 2020E. Fill in the yellow blanks on the picture.

Given are the statements of financial position, income statements, and other pertinent data for ABC Corporation (see previous page). The amounts are historical data for 2018 and 2019 and expected (E) amounts for 2020.           Requirements:           1. Compute the given ratios for 2020E. Fill in the yellow blanks on the picture.

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Given are the statements of financial position, income statements, and other pertinent data for ABC Corporation (see previous page).
The amounts are historical data for 2018 and 2019 and expected (E) amounts for 2020.
         
Requirements:
         
1. Compute the given ratios for 2020E. Fill in the yellow blanks on the picture. 
         
ABC Corporation Table 1 Balance Sheets 2020E 2019 2018 Assets 85,632 P 878,000 Cash 7,282 P 57,600 Accounts receivable 632,160 351,200 DInventories |Total current assets 2Gross fixed assets B Less: accumulated depreciation 4Net fixed assets 5 Total assets 1,716,480 1,287,360 1,926,802 P 1,202,950 263,160 939,790 P 2,866,592 P 715,200 2,680,112 P 1,124,000 1,197,160 491,000 380,120 817,040 P 3,497,152 P 146,200 344,800 1,468,800 P - Liabilities and equity B Accounts payable e Accruals DNotes payable |Total current liabilities e Long-term bonds 3 Common stock (100,000 shares) a Retained earnings 5 Total common equity 5 Total liabilities and equity 436,800 P 524,160 P 145,600 408,000 489,600 136,000 300,000 1,144,800 P 400,000 636,808 200,000 481,600 1,650,568 P 723,432 323,432 1,721,176 460,000 460,000 231,176 32,592 203,768 1,952,352 P 492,592 2,866,592 P 663,768 1,468,800 3,497,152 P 3 Table 2 Income Statements 2020E 2019 2018 DSales 7,035,600 P 5,875,992 1,159,608 6,034,000 P 5,528,000 506,000 3,432,000 2,864,000 568,000 Cost of goods sold e Gross income 3 Operating expenses except depreciation and amortization A EBITDA 5 Depreciation and amortization 5Earnings before interest and taxes (EBIT) - Interest expense 3 Earnings before taxes (EBT) e Taxes (40%) 358,672 209,328 550,000 519,988 (13,988) P 116,960 (130,948) P 136,012 (266,960) P (106,784) (160,176) P 609,608 P 116,960 18,900 190,428 492,648 P 70,008 422,640 P 43,828 146,600 Pagé 189,056 253,584 P 58,640 87,960 DNet Incone
Transcribed Image Text:ABC Corporation Table 1 Balance Sheets 2020E 2019 2018 Assets 85,632 P 878,000 Cash 7,282 P 57,600 Accounts receivable 632,160 351,200 DInventories |Total current assets 2Gross fixed assets B Less: accumulated depreciation 4Net fixed assets 5 Total assets 1,716,480 1,287,360 1,926,802 P 1,202,950 263,160 939,790 P 2,866,592 P 715,200 2,680,112 P 1,124,000 1,197,160 491,000 380,120 817,040 P 3,497,152 P 146,200 344,800 1,468,800 P - Liabilities and equity B Accounts payable e Accruals DNotes payable |Total current liabilities e Long-term bonds 3 Common stock (100,000 shares) a Retained earnings 5 Total common equity 5 Total liabilities and equity 436,800 P 524,160 P 145,600 408,000 489,600 136,000 300,000 1,144,800 P 400,000 636,808 200,000 481,600 1,650,568 P 723,432 323,432 1,721,176 460,000 460,000 231,176 32,592 203,768 1,952,352 P 492,592 2,866,592 P 663,768 1,468,800 3,497,152 P 3 Table 2 Income Statements 2020E 2019 2018 DSales 7,035,600 P 5,875,992 1,159,608 6,034,000 P 5,528,000 506,000 3,432,000 2,864,000 568,000 Cost of goods sold e Gross income 3 Operating expenses except depreciation and amortization A EBITDA 5 Depreciation and amortization 5Earnings before interest and taxes (EBIT) - Interest expense 3 Earnings before taxes (EBT) e Taxes (40%) 358,672 209,328 550,000 519,988 (13,988) P 116,960 (130,948) P 136,012 (266,960) P (106,784) (160,176) P 609,608 P 116,960 18,900 190,428 492,648 P 70,008 422,640 P 43,828 146,600 Pagé 189,056 253,584 P 58,640 87,960 DNet Incone
Total dividends paid Stock price Shares outstanding 55,000 P 11,000 P 22,000 12.17 2.25 P 8.50 250,000 100,000 100,000 |Таx rate 40.00% 40.00% 40.00% TABLE 3 Ratio Analysis Industry 2020E 2019 Average Current ratio Quick ratio 1.17 2.70 0.39 1.00 Cash ratio 0.00 0.40 Debt ratio 82.82% 60.00% Equity ratio 17.18% 40.00% Debt-to-equity (DE) ratio 481.94% 150.00% Equity multiplier Times interest earned (TIE) ratio Dividend payout ratio 374.92% 200.00% -0.96 6.20 -0.07 8.65 Inventory turnover Days sales in imventory 5.52 6.10 66.11 59.84 Accounts receivable turnover 12.27 11.41 Days sales outstanding 29.74 32.00 Accounts payable turnover 18.22 15.23 Days payable outstanding 20.04 23.97 Operating cycle Cash conversion cycle 95.85 91.84 75.82 67.87 Fixed asset turnover 9.39 7.00 Total asset turnover 2.78 2.60 Gross margin 8.39% 17.00% Operating margin Profit margin Return on assets (ROA) Return on equity (ROE) Basic earning power (BEP) Basic earnings per share (EPS) Price-to-earnings (PE) ratio Dividend yield Market/book (MB) Book value per share (BVPS) -2.17% 7.30% -2.65% 3.50% -7.39% 9.10% -27.70% 18.20% -6.04% 19.10% -1.60 1.16 -1.40 14.20 0.05 0.61 0.46 2.40 4.93 n.a.
Transcribed Image Text:Total dividends paid Stock price Shares outstanding 55,000 P 11,000 P 22,000 12.17 2.25 P 8.50 250,000 100,000 100,000 |Таx rate 40.00% 40.00% 40.00% TABLE 3 Ratio Analysis Industry 2020E 2019 Average Current ratio Quick ratio 1.17 2.70 0.39 1.00 Cash ratio 0.00 0.40 Debt ratio 82.82% 60.00% Equity ratio 17.18% 40.00% Debt-to-equity (DE) ratio 481.94% 150.00% Equity multiplier Times interest earned (TIE) ratio Dividend payout ratio 374.92% 200.00% -0.96 6.20 -0.07 8.65 Inventory turnover Days sales in imventory 5.52 6.10 66.11 59.84 Accounts receivable turnover 12.27 11.41 Days sales outstanding 29.74 32.00 Accounts payable turnover 18.22 15.23 Days payable outstanding 20.04 23.97 Operating cycle Cash conversion cycle 95.85 91.84 75.82 67.87 Fixed asset turnover 9.39 7.00 Total asset turnover 2.78 2.60 Gross margin 8.39% 17.00% Operating margin Profit margin Return on assets (ROA) Return on equity (ROE) Basic earning power (BEP) Basic earnings per share (EPS) Price-to-earnings (PE) ratio Dividend yield Market/book (MB) Book value per share (BVPS) -2.17% 7.30% -2.65% 3.50% -7.39% 9.10% -27.70% 18.20% -6.04% 19.10% -1.60 1.16 -1.40 14.20 0.05 0.61 0.46 2.40 4.93 n.a.
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