Compute each of the following ratios for 2015 and 2016 and Indicate whether each ratio was getting "better" or "worse"
from 2015 to 2016 and was "good" or "bad" compared to the Industry mfor 2016. (round all numbers to 2 digits past the decimal place) Type your answers in the table and submit this document. Profit Margin
Current Ratio Quick Ratio
Return on Assets Debt to Assets
Receivables turnover Avg. collection period"
Inventory Turnover“
Return on Equity
Times Interest Earned *Assume a 360 day year "Inventory Turnover can be computed 2 different ways. Use the formula listed in the text
(the one the text indicates many credit reporting agencies generally use) Use the following information to answer the questions above:
note: all sales are credit sales Income Stmt info: Sales less Cost of Goods Sold: Gross Profit Operating Expenses E
$ 1,000,000
400,000
500,000 350,000 E
S 1,050,000
424,000
626,000 365,750 Earnings before Interest & Taxes 250,000 260,250 Interest exp 25,000 25,500 Earnings before Taxes 225,000 234,750 Taxes 90,000 93,900 Net Income 5 135,000 5 140,850 Balance Sheet info: 1ggs1£2015 12 31 2016 Cash 25,000 $ 30,000
Accounts Receivable 50,000 S 51,000
Inventory 125,000 $ 137,500
Total Current Assets $ 200,000 $ 218,500
Fixed Assets (Net) 5 300,000 5 315,000
Tota | Assets 9 99 9,999 9 999 ,999
Current Liabilities S 110,000 5 117,700
Long Term Liabilities S 180,000 5 183,000
Total Liabilities $ 290,000 $ 300,700
Stockholder’s Equity 5 210,000 5 232,800
Total page: Equity: 5 500,099 5 533,509
