Q No.1 Use the following selected financial data for Happy Valley Co. to answerquestions.Net salesRs.200,000Cost of goods soldOperating expenses90,00080,00010,000180,000120,000Net incomeTotal assetsTotal liabilitiesCalculate (1) debt ratio (2) operating profit margin (3) return on equity (4) netprofit margin (5) Gross Profit ratio (6) Operating expense ratio (7) Assets turnoverQ No.2 Use the following selected financial information for Cascabel Corporation toanswer questionsCascabel CorporationBalance SheetDecember 31, 2015Liabilities and stockholders' equityCurrent liabilitiesAccounts payableAccrued liabilitiesAssetsCurrent assetsCashShort-term investmentsAccounts receivable3610256152Total current liabilitiesInventoryOther current assets57Long-term debt102Total current assets129 Total liabilities163Stockholders' equity195 Common stock (10)51Total stockholders' equity324 Total liabilities and equity 324Long-term assetsNet Plant110Retained earnings161Total assetsCascabel CorporationIncome StatementFor the Year Ended December 31, 2015Net salesCost of goods soldGross profitOperating expensesOperating profitInterest expense3452489774238. Earnings before taxesIncome tax expenseNet profit1511Additional information: Market price of stock is Rs.25. Firm declared and paid dividen20% on par value of stock.Compute following ratios:Current ratio (2) Quick ratio (3)Debt ratio (4)Equity ratio (5)Inventory turnover indays(use 360 days) (6) Receivable turnover in days(use 360 days) (7) Earnings pershare (8)Book value per share (9)Interest coverage ratio (10) Gross Profit ratioQ No.3 Selected data from recent annual reports of the Coca-Cola Compnay and PepsCo, Inc. are shown.Coca-ColaPepsi CoBalance sheet statistics:At year end:Quick assets20022774Current assets36043551Total assets828315127Current liabilitiesTotal liabilities36583692479811236Total stockholders' equity34853891Additional information:A/c Receivable8021110Inventory784494Income Statement data:Net Sales896615242Cost of goods soldInterest expenseNet income389274683086101724901Compute the following for each company:1. Net income as a percentage of sales

Q No.1 Use the following selected financial data for Happy Valley Co. to answer questions. Net sales Rs.200,000 Cost of goods sold Operating expenses Net income 90,000 80,000 Total assets Total liabilities 10,000 180,000 120,000 Calculate (1) debt ratio (2) operating profit margin (3) return on equity (4) net profit margin (5) Gross Profit ratio (6) Operating expense ratio (7) Assets turnover

Q No.1 Use the following selected financial data for Happy Valley Co. to answer questions. Net sales Rs.200,000 Cost of goods sold Operating expenses Net income 90,000 80,000 Total assets Total liabilities 10,000 180,000 120,000 Calculate (1) debt ratio (2) operating profit margin (3) return on equity (4) net profit margin (5) Gross Profit ratio (6) Operating expense ratio (7) Assets turnover

Managerial Accounting

15th Edition

ISBN:9781337912020

Author:Carl Warren, Ph.d. Cma William B. Tayler

Publisher:Carl Warren, Ph.d. Cma William B. Tayler

Chapter16: Financial Statement Analysis

Section: Chapter Questions

Problem 4PB

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