Preparation of Ratios The financial statements for Venus Industries follow: Venus Industries Consolidated Income Statements (in thousands, except per share data) Year ended December 31, 2023 2022 2021 Revenues $4,578,041 $3,864,324 $3,003,610 Costs and expenses: Cost of goods sold $2,227,189 $2,089,089 $2,005,691 Selling and administrative 922,261 836,212 664,061 Interest 29,744 32,966 30,472 Other expenses (income) 1,475 2,141 (43) Total costs and expenses $3,180,669 $2,960,408 $2,700,181 Income before income taxes $1,397,372 $903,916 $303,429 Income taxes 229,500 192,600 174,700 Net income $1,167,872 $711,316 $128,729 Venus Industries Consolidated Balance Sheets (in thousands) December 31, ASSETS 2023 2022 Current assets: Cash and equivalents $291,284 $260,050 Accounts receivable, less allowance for doubtful accounts of $19,447 and $20,046 807,530 596,018 Inventories 592,986 512,917 Deferred income taxes 26,378 28,355 Prepaid expenses 40,663 32,977 Total current assets $1,778,288 $1,450,363 Property, plant, and equipment $571,032 $497,795 Less accumulated depreciation (193,037) (151,758) Net property, plant, and equipment $377,995 $346,037 Goodwill 174,326 110,363 Other assets 30,927 24,701 Total assets $2,361,536 $1,931,464 LIABILITIES AND STOCKHOLDERS’ EQUITY Current liabilities: Current portion of long-term debt $52,985 $3,652 Notes payable 108,165 105,696 Accounts payable 135,701 134,729 Accrued liabilities 138,563 134,089 Income taxes payable 17,150 42,422 Total current liabilities $452,564 $420,588 Long-term debt 15,033 77,022 Noncurrent deferred income taxes 29,965 27,074 Other noncurrent liabilities 43,575 23,728 Commitments and contingencies 0 0 Redeemable preferred stock 300 300 Total liabilities $541,437 $548,712 Stockholders’ equity: Common stock at stated value: Class A convertible—26,691 and 26,919 shares outstanding $155 $161 Class B—49,161 and 48,591 shares outstanding 2,720 2,716 Capital in excess of stated value 108,451 93,799 Treasury stock (common at cost) (7,790) (6,860) Retained earnings 1,716,563 1,292,936 Total stockholders’ equity $1,820,099 $1,382,752 Total liabilities and stockholders’ equity $2,361,536 $1,931,464 Use the following data to respond to the requirements below. 2023 2022 2021 Average number of common shares outstanding 77,063 76,602 76,067 Accounts receivable, net $667,547 $596,018 $521,588 Inventories 592,986 512,917 586,594 Total assets 2,187,463 1,872,861 1,708,430 Stockholders’ equity 1,646,026 1,324,149 1,032,789 Stock repurchases 930,111 581,134 288,320 Cash flows from operating activities 190,000 150,000 137,000 Common dividends paid 57,797 45,195 39,555 Dividends per common share 0.75 0.59 0.52 Market price per share: High 90.25 77.45 54.50 Low 55.00 35.12 26.00 Close 86.33 71.65 43.22 Year ended December 31, Industry Averages 2023 2022 Return on equity 25.98% 23.04% profit margin 0.05 0.04 Asset turnover 2.24 2.56 Leverage 2.32 2.25 Required: 1. Prepare all the financial ratios for Venus for 2023 and 2022. In your computations, round the tax rate to three decimal places (ie: .4693 would be .469). Round your final answers to two decimal place

Preparation of Ratios The financial statements for Venus Industries follow: Venus Industries Consolidated Income Statements (in thousands, except per share data) Year ended December 31, 2023 2022 2021 Revenues $4,578,041 $3,864,324 $3,003,610 Costs and expenses: Cost of goods sold $2,227,189 $2,089,089 $2,005,691 Selling and administrative 922,261 836,212 664,061 Interest 29,744 32,966 30,472 Other expenses (income) 1,475 2,141 (43) Total costs and expenses $3,180,669 $2,960,408 $2,700,181 Income before income taxes $1,397,372 $903,916 $303,429 Income taxes 229,500 192,600 174,700 Net income $1,167,872 $711,316 $128,729 Venus Industries Consolidated Balance Sheets (in thousands) December 31, ASSETS 2023 2022 Current assets: Cash and equivalents $291,284 $260,050 Accounts receivable, less allowance for doubtful accounts of $19,447 and $20,046 807,530 596,018 Inventories 592,986 512,917 Deferred income taxes 26,378 28,355 Prepaid expenses 40,663 32,977 Total current assets $1,778,288 $1,450,363 Property, plant, and equipment $571,032 $497,795 Less accumulated depreciation (193,037) (151,758) Net property, plant, and equipment $377,995 $346,037 Goodwill 174,326 110,363 Other assets 30,927 24,701 Total assets $2,361,536 $1,931,464 LIABILITIES AND STOCKHOLDERS’ EQUITY Current liabilities: Current portion of long-term debt $52,985 $3,652 Notes payable 108,165 105,696 Accounts payable 135,701 134,729 Accrued liabilities 138,563 134,089 Income taxes payable 17,150 42,422 Total current liabilities $452,564 $420,588 Long-term debt 15,033 77,022 Noncurrent deferred income taxes 29,965 27,074 Other noncurrent liabilities 43,575 23,728 Commitments and contingencies 0 0 Redeemable preferred stock 300 300 Total liabilities $541,437 $548,712 Stockholders’ equity: Common stock at stated value: Class A convertible—26,691 and 26,919 shares outstanding $155 $161 Class B—49,161 and 48,591 shares outstanding 2,720 2,716 Capital in excess of stated value 108,451 93,799 Treasury stock (common at cost) (7,790) (6,860) Retained earnings 1,716,563 1,292,936 Total stockholders’ equity $1,820,099 $1,382,752 Total liabilities and stockholders’ equity $2,361,536 $1,931,464 Use the following data to respond to the requirements below. 2023 2022 2021 Average number of common shares outstanding 77,063 76,602 76,067 Accounts receivable, net $667,547 $596,018 $521,588 Inventories 592,986 512,917 586,594 Total assets 2,187,463 1,872,861 1,708,430 Stockholders’ equity 1,646,026 1,324,149 1,032,789 Stock repurchases 930,111 581,134 288,320 Cash flows from operating activities 190,000 150,000 137,000 Common dividends paid 57,797 45,195 39,555 Dividends per common share 0.75 0.59 0.52 Market price per share: High 90.25 77.45 54.50 Low 55.00 35.12 26.00 Close 86.33 71.65 43.22 Year ended December 31, Industry Averages 2023 2022 Return on equity 25.98% 23.04% profit margin 0.05 0.04 Asset turnover 2.24 2.56 Leverage 2.32 2.25 Required: 1. Prepare all the financial ratios for Venus for 2023 and 2022. In your computations, round the tax rate to three decimal places (ie: .4693 would be .469). Round your final answers to two decimal place

Survey of Accounting (Accounting I)

8th Edition

ISBN:9781305961883

Author:Carl Warren

Publisher:Carl Warren

Chapter9: Metric-analysis Of Financial Statements

Section: Chapter Questions

Problem 9.1E

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Question

Preparation of Ratios

The financial statements for Venus Industries follow:

Venus Industries Consolidated Income Statements (in thousands, except per share data)
	Year ended December 31,
	2023	2022	2021
Revenues	$4,578,041	$3,864,324	$3,003,610
Costs and expenses:
Cost of goods sold	$2,227,189	$2,089,089	$2,005,691
Selling and administrative	922,261	836,212	664,061
Interest	29,744	32,966	30,472
Other expenses (income)	1,475	2,141	(43)
Total costs and expenses	$3,180,669	$2,960,408	$2,700,181
Income before income taxes	$1,397,372	$903,916	$303,429
Income taxes	229,500	192,600	174,700
Net income	$1,167,872	$711,316	$128,729

Venus Industries Consolidated Balance Sheets (in thousands)
	December 31,
ASSETS	2023	2022
Current assets:
Cash and equivalents	$291,284	$260,050
Accounts receivable, less allowance for doubtful accounts of $19,447 and $20,046	807,530	596,018
Inventories	592,986	512,917
Deferred income taxes	26,378	28,355
Prepaid expenses	40,663	32,977
Total current assets	$1,778,288	$1,450,363
Property, plant, and equipment	$571,032	$497,795
Less accumulated depreciation	(193,037)	(151,758)
Net property, plant, and equipment	$377,995	$346,037
Goodwill	174,326	110,363
Other assets	30,927	24,701
Total assets	$2,361,536	$1,931,464
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities:
Current portion of long-term debt	$52,985	$3,652
Notes payable	108,165	105,696
Accounts payable	135,701	134,729
Accrued liabilities	138,563	134,089
Income taxes payable	17,150	42,422
Total current liabilities	$452,564	$420,588
Long-term debt	15,033	77,022
Noncurrent deferred income taxes	29,965	27,074
Other noncurrent liabilities	43,575	23,728
Commitments and contingencies	0	0
Redeemable preferred stock	300	300
Total liabilities	$541,437	$548,712
Stockholders’ equity:
Common stock at stated value:
Class A convertible—26,691 and 26,919 shares outstanding	$155	$161
Class B—49,161 and 48,591 shares outstanding	2,720	2,716
Capital in excess of stated value	108,451	93,799
Treasury stock (common at cost)	(7,790)	(6,860)
Retained earnings	1,716,563	1,292,936
Total stockholders’ equity	$1,820,099	$1,382,752
Total liabilities and stockholders’ equity	$2,361,536	$1,931,464

Use the following data to respond to the requirements below.

	2023	2022	2021
Average number of common shares outstanding	77,063	76,602	76,067
Accounts receivable, net	$667,547	$596,018	$521,588
Inventories	592,986	512,917	586,594
Total assets	2,187,463	1,872,861	1,708,430
Stockholders’ equity	1,646,026	1,324,149	1,032,789
Stock repurchases	930,111	581,134	288,320
Cash flows from operating activities	190,000	150,000	137,000
Common dividends paid	57,797	45,195	39,555
Dividends per common share	0.75	0.59	0.52
Market price per share:
High	90.25	77.45	54.50
Low	55.00	35.12	26.00
Close	86.33	71.65	43.22

	Year ended December 31,
Industry Averages	2023	2022
Return on equity	25.98%	23.04%
profit margin	0.05	0.04
Asset turnover	2.24	2.56
Leverage	2.32	2.25

Required:

1. Prepare all the financial ratios for Venus for 2023 and 2022. In your computations, round the tax rate to three decimal places (ie: .4693 would be .469). Round your final answers to two decimal places.

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