Lan & Chen Technologies: Income Statements for Year Ending December 31 (Thousands of Dollars) 2018 2017 Sales $945,000 $900,000 Expenses excluding depreciation and amortization 812,700 774,000 EBITDA $132,300 $126,000 Depreciation and amortization 33,100 31,500 EBIT $99,200 $94,500 Interest Expense 10,470 8,600 EBT $88,730 $85,900 Taxes (40%) 35,492 34,360 Net income $53,238 $51,540 Common dividends $43,300 $41,230 Addition to retained earnings $9,938 $10,310 Lan & Chen Technologies: December 31 Balance Sheets (Thousands of Dollars) Assets 2018 2017 Cash and cash equivalents $47,250 $45,000 Short-term investments 3,800 3,400 Accounts Receivable 283,500 269,000 Inventories 141,750 136,000 Total current assets $476,300 $453,400 Net fixed assets 330,750 315,000 Total assets $807,050 $768,400 Liabilities and equity Accounts payable $94,500 $89,800 Accruals 47,250 45,000 Notes payable 26,262 9,000 Total current liabilities $168,012 $143,800 Long-term debt 94,500 90,000 Total liabilities $262,512 $233,800 Common stock 444,600 444,600 Retained Earnings $99,938 90,000 Total common equity $544,538 $534,600 Total liabilities and equity $807,050 $768,400 Ratio Analysis 2018 2017 Industry Avg Liquidity Ratios Current Ratio 2.90 Quick Ratio 1.90 Asset Management Ratios Inventory Turnover (Total COGS/Inventories) Days Sales Outstanding 98.00 Fixed Assets Turnover 2.56 Total Assets Turnover 1.23 Debt Management Ratios Debt Ratio (Total debt-to-assets) 20.0% Liabilities-to-assets ratio 32.1% Times-interest-earned ratio 12.33 Profitability Ratios Profit Margin 6.25% Basic Earning Power 10.25% Return on Assets 6.75% Return on Equity 9.46% Market Value Ratios Earnings per share NA Price-to-earnings ratio 15.65 Cash flow per share NA Price-to-cash flow ratio 10.11 Book Value per share NA Market-to-book ratio 1.72 How has Lan & Chen's LIQUIDITY changed from 2017 to 2018 and in comparision to the industry average? How has Lan & Chen's ASSET MANAGEMENT changed from 2017 to 2018 and in comparision to the industry average? How has Lan & Chen's DEBT MANAGEMENT changed from 2017 to 2018 and in comparision to the industry average? How has Lan & Chen's PROFITABILITY changed from 2017 to 2018 and in comparision to the industry average? How do Lan & Chen's MARKET VALUE ratios compare to the industry average?

Lan & Chen Technologies: Income Statements for Year Ending December 31 (Thousands of Dollars) 2018 2017 Sales $945,000 $900,000 Expenses excluding depreciation and amortization 812,700 774,000 EBITDA $132,300 $126,000 Depreciation and amortization 33,100 31,500 EBIT $99,200 $94,500 Interest Expense 10,470 8,600 EBT $88,730 $85,900 Taxes (40%) 35,492 34,360 Net income $53,238 $51,540 Common dividends $43,300 $41,230 Addition to retained earnings $9,938 $10,310 Lan & Chen Technologies: December 31 Balance Sheets (Thousands of Dollars) Assets 2018 2017 Cash and cash equivalents $47,250 $45,000 Short-term investments 3,800 3,400 Accounts Receivable 283,500 269,000 Inventories 141,750 136,000 Total current assets $476,300 $453,400 Net fixed assets 330,750 315,000 Total assets $807,050 $768,400 Liabilities and equity Accounts payable $94,500 $89,800 Accruals 47,250 45,000 Notes payable 26,262 9,000 Total current liabilities $168,012 $143,800 Long-term debt 94,500 90,000 Total liabilities $262,512 $233,800 Common stock 444,600 444,600 Retained Earnings $99,938 90,000 Total common equity $544,538 $534,600 Total liabilities and equity $807,050 $768,400 Ratio Analysis 2018 2017 Industry Avg Liquidity Ratios Current Ratio 2.90 Quick Ratio 1.90 Asset Management Ratios Inventory Turnover (Total COGS/Inventories) Days Sales Outstanding 98.00 Fixed Assets Turnover 2.56 Total Assets Turnover 1.23 Debt Management Ratios Debt Ratio (Total debt-to-assets) 20.0% Liabilities-to-assets ratio 32.1% Times-interest-earned ratio 12.33 Profitability Ratios Profit Margin 6.25% Basic Earning Power 10.25% Return on Assets 6.75% Return on Equity 9.46% Market Value Ratios Earnings per share NA Price-to-earnings ratio 15.65 Cash flow per share NA Price-to-cash flow ratio 10.11 Book Value per share NA Market-to-book ratio 1.72 How has Lan & Chen's LIQUIDITY changed from 2017 to 2018 and in comparision to the industry average? How has Lan & Chen's ASSET MANAGEMENT changed from 2017 to 2018 and in comparision to the industry average? How has Lan & Chen's DEBT MANAGEMENT changed from 2017 to 2018 and in comparision to the industry average? How has Lan & Chen's PROFITABILITY changed from 2017 to 2018 and in comparision to the industry average? How do Lan & Chen's MARKET VALUE ratios compare to the industry average?

Excel Applications for Accounting Principles

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ISBN:9781111581565

Author:Gaylord N. Smith

Publisher:Gaylord N. Smith

Chapter14: Statement Of Cash Flows (cashflow)

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Problem 1R: The comparative balance sheet of Prime Sports Gear, Inc., at December 31, the end of the fiscal...

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Please help me on Ratio Analysis below.

Lan & Chen Technologies: Income Statements for Year Ending December 31
(Thousands of Dollars)			2018	2017
Sales				$945,000	$900,000
Expenses excluding depreciation and amortization	812,700	774,000
EBITDA				$132,300	$126,000
Depreciation and amortization		33,100	31,500
EBIT				$99,200	$94,500
Interest Expense			10,470	8,600
EBT				$88,730	$85,900
Taxes (40%)				35,492	34,360
Net income				$53,238	$51,540

Common dividends			$43,300	$41,230
Addition to retained earnings		$9,938	$10,310

Lan & Chen Technologies: December 31 Balance Sheets
(Thousands of Dollars)
Assets				2018	2017
Cash and cash equivalents			$47,250	$45,000
Short-term investments			3,800	3,400
Accounts Receivable			283,500	269,000
Inventories				141,750	136,000
Total current assets			$476,300	$453,400
Net fixed assets			330,750	315,000
Total assets				$807,050	$768,400

Liabilities and equity
Accounts payable			$94,500	$89,800
Accruals				47,250	45,000
Notes payable			26,262	9,000
Total current liabilities			$168,012	$143,800
Long-term debt			94,500	90,000
Total liabilities			$262,512	$233,800
Common stock			444,600	444,600
Retained Earnings			$99,938	90,000
Total common equity			$544,538	$534,600
Total liabilities and equity			$807,050	$768,400

Ratio Analysis	2018	2017	Industry Avg
Liquidity Ratios
Current Ratio			2.90
Quick Ratio			1.90
Asset Management Ratios
Inventory Turnover (Total COGS/Inventories)
Days Sales Outstanding			98.00
Fixed Assets Turnover			2.56
Total Assets Turnover			1.23
Debt Management Ratios
Debt Ratio (Total debt-to-assets)			20.0%
Liabilities-to-assets ratio			32.1%
Times-interest-earned ratio			12.33
Profitability Ratios
Profit Margin			6.25%
Basic Earning Power			10.25%
Return on Assets			6.75%
Return on Equity			9.46%
Market Value Ratios
Earnings per share			NA
Price-to-earnings ratio			15.65
Cash flow per share			NA
Price-to-cash flow ratio			10.11
Book Value per share			NA
Market-to-book ratio			1.72

How has Lan & Chen's LIQUIDITY changed from 2017 to 2018 and in comparision to the industry average?



How has Lan & Chen's ASSET MANAGEMENT changed from 2017 to 2018 and in comparision to the industry average?



How has Lan & Chen's DEBT MANAGEMENT changed from 2017 to 2018 and in comparision to the industry average?



How has Lan & Chen's PROFITABILITY changed from 2017 to 2018 and in comparision to the industry average?



How do Lan & Chen's MARKET VALUE ratios compare to the industry average?

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Ratio Analysis:

Ratio analysis helps in getting an idea about an entity's operational efficiency, liquidity and profitability using the income statement and balance sheet. The ratio analysis is the fundamental analysis of equity of an entity.

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