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Return on sales RoA-Operational RoA-Total Management Performance

Return on sales RoA-Operational RoA-Total Management Performance

Century 21 Accounting General Journal
Century 21 Accounting General Journal
11th Edition
ISBN:9781337680059
Author:Gilbertson
Publisher:Gilbertson
Chapter17: Financial Statement Analysis
Section17.4: Analyzing Financial Statements Using Financial Ratios
Problem 1WT
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Return on sales RoA-Operational RoA-Total Management Performance Return on Equity Earnings Per Share P/E Ratio Dividends Yield Payout Ratio Debt Ratio Debt - Equity Ratio Time interest earned Defensive interval Ratio Cash flow to total debt Cash flow margin
PROBLEM II Financial Ratios (Adapted from MAS Reviewer by Aliohn Lee) Lyn merchandising has 1,000,000 common shares with each share priced at P8. In 2017, the company declared dividends of PO.10 per share. The balance sheet at the end of 2017 showed approximately the same amounts as that at the end of 2016. The financial statements of Lyn Merchandising are as follows: Lyn Merchandising, Income Statement for 2017 (In thousands) Sales P4,700 Cost of Goods Sold (2,300) Gross Profit P2,400 Operating Expenses: Depreciation P320 Others 23 (1,550) ЕBIT P850 Interest Expense (150) Earnings before tax P700 Income Tax (280) NET INCOME P420 Lyn Merchandising, Balance Sheet at December 31, 2017 (In Thousands) ASSETS LIABILITIES and SHE Cash Accounts Payable Accrued expenses Total Current Liab. P220 P190 Accounts Rec. 440 180 Inventory Total Current Ass. P1,070 410 P370 Long-term debt Common stocks 1,960 PPE 5,600 1,810 Accum. Dep. (2,100) Retained earnings 430 Total Assets P4,570 Total Liab and SHE P4,570 REQUIRED: (Round answers to two decimal places) 1. Current Ratio 11. Earnings Per Share 12. P/E ratio 2. Acid-test Ratio 3. Accounts Receivable Turnover 13. Dividends Yield 4. Inventory Turnover 5. Gross Profit Margin 14. Payout Ratio 15. Debt Ratio 6. Operating Profit Margin 7. Return on Sales 8. BOA-Operational 9. BOA-Total Management performance 10. Return on Equity 16. Debt-Equity ratio 17. Times interest earned 18. Defensive Interval ratio 19. Cash flow to total debt 20. Cash flow margin
Transcribed Image Text:PROBLEM II Financial Ratios (Adapted from MAS Reviewer by Aliohn Lee) Lyn merchandising has 1,000,000 common shares with each share priced at P8. In 2017, the company declared dividends of PO.10 per share. The balance sheet at the end of 2017 showed approximately the same amounts as that at the end of 2016. The financial statements of Lyn Merchandising are as follows: Lyn Merchandising, Income Statement for 2017 (In thousands) Sales P4,700 Cost of Goods Sold (2,300) Gross Profit P2,400 Operating Expenses: Depreciation P320 Others 23 (1,550) ЕBIT P850 Interest Expense (150) Earnings before tax P700 Income Tax (280) NET INCOME P420 Lyn Merchandising, Balance Sheet at December 31, 2017 (In Thousands) ASSETS LIABILITIES and SHE Cash Accounts Payable Accrued expenses Total Current Liab. P220 P190 Accounts Rec. 440 180 Inventory Total Current Ass. P1,070 410 P370 Long-term debt Common stocks 1,960 PPE 5,600 1,810 Accum. Dep. (2,100) Retained earnings 430 Total Assets P4,570 Total Liab and SHE P4,570 REQUIRED: (Round answers to two decimal places) 1. Current Ratio 11. Earnings Per Share 12. P/E ratio 2. Acid-test Ratio 3. Accounts Receivable Turnover 13. Dividends Yield 4. Inventory Turnover 5. Gross Profit Margin 14. Payout Ratio 15. Debt Ratio 6. Operating Profit Margin 7. Return on Sales 8. BOA-Operational 9. BOA-Total Management performance 10. Return on Equity 16. Debt-Equity ratio 17. Times interest earned 18. Defensive Interval ratio 19. Cash flow to total debt 20. Cash flow margin
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