Ratio calculation

Company: Coca-Cola (see attached financial statements)

Calculate for year 2008 and 2009:

1. The companies average income tax rate
2. Working capital
3. Current ratio
4. Acid-test ratio
5. Gross-profit ratio
6. ROI (including margin & turnover)
7. ROE

Ratio calculation

See attached file.

The comparative financial statements of Dental Innovations Inc. are attached. The market price of Dental Innovations Inc. common stock was $15 on December 31, 2008. For dollar amounts, round to the nearest cent.

1. Working capital

$
2. Current ratio

3. Quick ratio

4. Accounts receivable turnover

5. Number of days’ sales in receivables

6. Inventory turnover

7. Number of days’ sales in inventory

8. Ratio of fixed assets to long-term liabilities

9. Ratio of liabilities to stockholders’ equity

10. Number of times interest charges earned

11. Number of times preferred dividends earned

12. Ratio of net sales to assets

13. Rate earned on total assets

%
14. Rate earned on stockholders’ equity

%
15. Rate earned on common stockholders’ equity

%
16. Earnings per share on common stock

$
17. Price-earnings ratio

18. Dividends per share of common stock

$
19. Dividend yield

%

Ratio calculation

Can you help me get started with this assignment?

Laurel Street, president of Uvalde Manufacturing Inc. is preparing a proposal to present to her board of directors regarding a planned plant expansion that will cost $10 million.

At issue is whether the expansion should be financed with debt (a long-term note at First National Bank of Uvalde with an interest rate of 15%) or through the issuance of common stock (200,000 shares at $50 per share).

Uvalde Manufacturing currently has a capital structure of:
Debt (12% interest) 40,000,000
Equity 50,000,000
The firm’s most recent income statement is presented next:
Sales $100,000,000
Cost of goods sold 65,000,000
Gross profit 35,000,000
Operating expenses 20,000,000
Operating profit 15,000,000
Interest expense 4,800,000
Earnings before tax 10,200,000
Income tax expense (40%) 4,080,000
Net income $ 6,120,000
Earnings per share (800,000 shares) $ 7.65

Laurel Street is aware that financing the expansion with debt will increase risk but could also benefit shareholders through financial leverage. Estimates are that the plant expansion will increase operating profit by 20%.The tax rate is expected to stay at 40%. Assume a 100% dividend payout ratio.
Required
a. Calculate the debt ratio, time interest earned, earnings per share, and the financial leverage index under each alternative, assuming the expected increase in operating profit is realized.
b. Discuss the factors the board should consider in making a decision.

Ratio Calculation

Please see attachment.

Selected Financial Ratios [L03, l04]
The financial statements for Castile Products, Inc., an importer of consumer products, are given below:
Castile Products, Inc.
Balance Sheet December 31
Assets
Current assets:
Cash .
Accounts receivable, net .
Merchandise inventory .
Prepaid expenses .
Total current assets .
Property and equipment, net .
Total assets .
$ 6,500 35,000 70,000 3,500
115,000 185,000
$300,000
(continued)

(concluded)
Castile Products, Inc.
Balance Sheet December 31
Liabilities and Stockholders’ Equity Liabilities:
Current liabilities .
Bonds payable, 10% .
Total liabilities .
Stockholders’ equity:
Common stock, $5 per value .
Retained earnings .
Total stockholders’ equity .
Total liabilities and stockholders’ equity .
$ 30,000 140,000
$ 50,000 80,000
130,000
170,000 $300,000
Castile Products, Inc.
Income Statement
For the Year Ended December 31
Sales .
Cost of goods sold .
Gross margin .
Operating expenses .
Net operating income .
Interest expense .
Net income before taxes .
Income taxes (30%) .
Net income .
$420,000 292,500
127,500 89,500
38,000 8,000
30,000 9,000
$ 21,000
Account balances at the beginning of the year were: accounts receivable, $25,000; and inventory, $60,000. All sales were on account.

Compute financial ratios as follows:
Acid-test (quick) ratio.

Average collection period.

Average sale period.

Times interest earned.

Ratio calculation

Use the annual information found in attachment below to answer this the following. Need to calculate the following asset activity ratios for the end of 2005:
1.Average Collection Period

2.Inventory Turnover

3.Total Asset Turnover
To get full credit on this project must show all work, including formulae and calculations used to arrive at financial values.
See Attachment: Annual Information

Ratio calculation

The comparative balance sheet of a company at October 31, 2009 for the years 2009 and 2008, and the income statements for the years ended October 31, 2008 and 2009, are presented on the following page.

Balance Sheet
October 31

Assets 2009 2008

Cash $ 34,324 $13,050
Accounts receivable 3,250 2,710
Inventory 7,897 7,450
Prepaid expenses 6,300 6,050
Equipment 96,500 75,500
Accumulated depreciation (25,200) (9,100)

Total assets $123,071 $95,660

Liabilities and Stockholders’ Equity

Accounts payable $ 3,650 $ 2,450
Income taxes payable 10,251 11,200
Dividends payable (on common stock) 28,000 25,000
Salaries payable 2,250 1,280
Interest payable 188 0
Note payable-current portion 3,000 0
Note payable-long-term portion 4,500 0
Preferred stock, no par, $6 cumulative-
3,000 and 2,500 shares issued,
respectively 15,000 12,500
Common stock, $1 par-23,180
shares issued 23,180 23,180
Additional paid in capital-treasury stock 250 250
Retained earnings 32,802 19,800

Total liabilities and stockholders’ equity $123,071 $95,660

Income Statement
Year Ended October 31

2009 2008
Sales $485,625 $462,500
Cost of goods sold 222,694 208,125
Gross profit 262,931 254,375

Operating expenses
Depreciation expense 17,850 9,100
Salaries and wages expense 147,979 146,350
Other operating expenses 43,186 42,925
Total operating expenses 209,015 198,375

Income from operations 53,916 56,000

Other expenses
Interest expense 413 0
Loss on sale of computer equipment 2,250 0
Total other expenses 2,663 0

Income before income tax 51,253 56,000
Income tax expense 10,251 11,200

Net income $ 41,002 $ 44,800

Instructions: Calculate the following ratios for 2008 and 2009.

2009
1. Current ratio
2. Debt to total assets
3. Gross profit rate
4. Profit margin
5. Return on assets (Total assets at November 1, 2007, were $33,180.)
6. Return on common stockholders’ equity (Total common stockholders’ equity at November 1, 2007, was $23,180.)
7. Payout ratio

2008
1. Current ratio
2. Debt to total assets
3. Gross profit rate
4. Profit margin
5. Return on assets (Total assets at November 1, 2007, were $33,180.)
6. Return on common stockholders’ equity (Total common stockholders’ equity at November 1, 2007, was $23,180.)
7. Payout ratio

Ratio calculation

USE THE FOLLOWING INFORMATION FOR THE NEXT FIVE PROBLEMS

BMC CORPORATION INCOME STATEMENT
FISCAL YEAR ENDING 12/31/2004
(DOLLARS IN THOUSANDS)

Net Sales $1025
Cost of Goods Sold 682
Gross Profit Margin 343
Depreciation 31
Operating Expense 103
Administrative Expense 127
Operating Profit 82
Interest 27
Profit Before Tax 55
Taxes 17
Net Income $38

BMC CORPORATION BALANCE SHEET
FISCAL YEAR ENDING 12/31/2004
(DOLLARS IN THOUSANDS)

ASSETS LIABILITIES
Cash $ 61 Notes payable $223
Accts rec 286 Accounts payable 152
Inventory 354 Accruals 32
Ttl cur assts 701 Total current liabilities 407
Net fixed assets 802 Long term debt 306

Common stock ($1.50 par) 102
Paid in surplus 226
Retained earnings 462
Total liabilities and
Total assets $1503 Stockholders’ equity $1503

1. What was BMC’S return on equity in 2004?

2. What was BMC’S quick ratio for 2004?

3. What was BMC’S interest coverage for 2004?

4. What was BMC’S current ratio at year-end 2004?

5. What was BMC’S net profit margin?

Ratio Calculation

Use the annual information found on the attach file to calculate the following asset activity ratios for the end of 2005:

Average Collection Period
Inventory Turnover
Total Asset Turnover

Including formulae and calculations used to arrive at financial values.

Ratio Calculation

C11.14
a. There is a 2009 income statement and balance sheet for Gerrard Construction Co. What other financial statements are required? What information would these statements communicate that could not be determined by reviewing only the income statement and balance sheet?

b. Briefly describe the note disclosures that should be provided by Gerrard Construction Co. and explain why note disclosures are considered an integral part of the financial statements.

c. Assume that the balance of “Accounts Receivable, net” at December 31, 2008, was $8,200. Calculate the following activity measures for Gerrard Construction Co. for the year ended December 31, 2009:
1. Accounts receivable turnover.
2. Number of days’ sales in accounts receivable.

d. Calculate the following financial leverage measures for Gerrard Construction Co. at December 31, 2009:
1. Debt ratio
2. Debt/equity ratio.

e. Gerrard Construction Co. wishes to lease some new earthmoving equipment from Caterpillar on a long-term basis. What impact (increase, decrease, or no effect) would a capital lease of $4 million have on the company’s debt ratio and debt/equity ratio? (Note that these items were computer in part b and do not need to be recomputed for this requirement).

f. Review the answer noted in the Excel sheet in red at the bottom marked “f.” Assume that Gerrard Construction Co. had 2,400,000 shares of $1 par value common stock outstanding through 2009, and that the market price per share of common stock at December 31, 2009, was $18.75. Calculate the following profitability measures for the year ended December 31, 2009:
1. Earnings per share of common stock.
2. Price/earnings ratio.
3. Dividend yield.
4. Dividend payout ratio.

Ratio calculation

See attachments

Calculate 7 ratios for two years for each category. Show the ratios in a table similar to this one below:

DEER PARK FINANCIAL RATIOS
20XX 20XX
Solvency Ratios
Solvency Ratio 1 0.60 0.51
Solvency Ratio 2 0.38 0.24
Liquidity Ratios
Liquidity Ratio 1 0.004 -0.031
Liquidity Ratio 2 1.02 0.83

Complete as Word Doc :

Provide “an explanation of each ratio”. What you need to do is comment on the ratios themselves and the trend.
? For example, do you believe the company has adequate liquidity?
? Comment on the debt ratios and the trends-do you believe the company has too much debt?
? What about the profitability ratios and the trends?
? Is the trend from one year to the next getting stronger or weaker for all of the ratios? At the end of this section, make an overall statement of the team’s opinion on the overall financial position of the company.
? What does each ratio mean specifically for Tootsie Roll Inc

Ratios below:

1. Liquidity
a. Current Ratio: for every dollar of liabilities this tells how much TR has in assets
b. Receivables Turnover: How liquid are the receivables
c. Average Collection period: Assess the effectiveness of TR’s credit and collection policies
2. Solvency
a. Debt to total asset ratio: percent of total financing provided by creditors
b. Times interest earned ratio: TR’s ability to meet interest payments as they come due.
3. Profitability
a. Return on assets ratio: measures the overall profitability of assets in terms of the income earned on each dollar invested in assets
b. Gross Profit Rate: Indicates TR’s ability to maintain an adequate selling price above its cost of goods sold (chose this one since TR is concerned about costs they cannot pass on to customers p. A-12 & A-13).

Ratio calculation

Please see attached.

The condensed financial statements of Westward Corporation for 2006 are presented below.

Westward Corporation Westward Corporation
Balance Sheet Income Statement
December 31, 2006 For the Year Ended December 31, 2006

Assets Revenues $2,000,000
Current assets Expenses
Cash and temporary Cost of goods sold 1,080,000
investments $ 30,000 Selling and administrative
Accounts receivable 70,000 expenses 495,000
Inventories 120,000 Interest expense 30,000
Total current assets 220,000 Total expenses 1,605,000
Property, plant, and Income before income taxes 395,000
equipment (net) 780,000 Income tax expense 140,000
Total assets $1,000,000 Net income $ 255,000

Liabilities and Stockholders’ Equity
Current liabilities $ 80,000
Long-term liabilities 300,000
Common stockholders’ equity 620,000
Total liabilities and
stockholders’ equity $1,000,000

Additional data as of December 31, 2005: Inventory = $100,000; Total assets = $900,000; Common stockholders’ equity = $540,000.

Instructions
Compute the following listed ratios for 2006 showing supporting calculations.

(a) Current ratio = .

(b) Debt to total assets = .

(c) Times interest earned = .

(d) Inventory turnover = .

(e) Profit margin ratio = .

(f) Return on common stockholders’ equity = .

(g) Return on assets = .

Ratio Calculation

(See attached file for full problem description)
P 8-5
Required :
a. Calculate the following for 2004 and 2003
1) Net profit margin
2)Return on assets (using ending assets)
3) Total assets turnover (using ending assets)
4) Dupont analysis
5) Operating income margin
6) Return on operating assets ( using ending assets)
7) Operating asset turnover (using ending assets)
8) Dupont analysis with operating ratios
9) Rteurn on investment (using ending liabilities and equity)
10) Return on equity (using ending common equity)
b) Based on the previous computations, summarize the trend in profitability for this firm

ABC Corporation
Statement of Earnings
Years Ended December 31, 2003 2004

2004 2003

Net Sales $1,589,150 $1,294,966
Other Income 22,334 20,822
Gross Profit 1,611,484 1,315,788
Costs and expenses:
Material and manufacturing costs of products sold 651,390 466,250
Research and development 135,314 113,100
General and selling 526,680 446,110
Interest 18,768 11,522
Other 15,570 7,306
1,347,722 1,044,288
Earnings before income taxes and minority equity 263,762 271,500
Provision for income taxes 114,502 121,740
Earnings before minority equity 149,260 149,760
Minority equity in earnings 11,056 12,650
Net earnings 138,204 137,110

Average common shares issued 29,580 29,480
Total long-term debt $209,128 $212,702
Total stockholders’ equity (all common) 810,292 720,530
Total assets 1,437,636 1,182,110
Operating assets 1,411,686 1,159,666
Dividends per share 1.96 1.86
Stock price (December 31) 53 3/4 76 1/8

Ratio calculation

Please help with these two exercises. Thanks!

**********
Exercise 14-7
Bennis Company has the following comparative balance sheet data.
BENNIS COMPANY
Balance Sheet
December 31

2012 2011
Cash $15,000 $30,000
Receivables (net) 70,000 60,000
Inventories 60,000 50,000
Plant assets (net) 200,000 180,000
$345,000 $320,000
Accounts payable $50,000 $60,000
Mortgage payable (15%) 100,000 100,000
Common stock, $10 par 140,000 120,000
Retained earnings 55,000 40,000
$345,000 $320.00

Additional information for 2012:
1. Net income was $25,000.
2. Sales on account were $410,000. Sales returns and allowances were $20,000.
3. Cost of goods sold was $198,000.
4. The allowance for doubtful accounts was $2,500 on December 31, 2012, and $2,000 on December 31, 2011.

Instructions:
Compute the following ratios at December 31, 2012.
(a) Current.
(b) Acid-test.
(c) Receivables turnover.
(d) Inventory turnover.

Exercise 14-9
The income statement for Christensen, Inc. appears below.
CHRISTENSEN, INC.
Income Statement
For the Year Ended December 31, 2011

Sales $400,000
Cost of goods sold 230,000
Gross profit 170,000
Expenses (including $16,000 interest and $24,000 income taxes) 105,000
Net income $65,000

Additional information:
1. The weighted-average common shares outstanding in 2011 were 30,000 shares.
2. The market price of Christensen, Inc. stock was $13 in 2011.
3. Cash dividends of $26,000 were paid, $5,000 of which were to preferred stockholders.

Instructions:
Compute the following ratios for 2011.
(a) Earnings per share.
(b) Price-earnings.
(c) Payout.
(d) Times interest earned.

Ratio calculation

Sprint Company has the following data for 2011:

Division A Division B
Sales $400,000 $300,000
Contribution margin 160,000 125,000
Operating income 80,000 30,000
Average operating assets 320,000 200,000
Weighted average cost of capital 15% 15%

Sprint Company has a target ROI of 20 percent.

Required:

Calculate the following amounts for each division:
Make sure you have answers for Division A & B. Also make sure your answers are in the appropriate format.
a. Margin ratio
b. Turnover ratio
c. ROI
d. Residual income
e. EVA

Must show work.

Ratio calculation

Please find answers top C and D.

Huffman Trucking
Statement of Income
(Unaudited)

December 31st
2006 2005
(In Thousands)

Revenue $879,944 $807,288

Operating Expenses
Salaries, Wages & Benefits $353,739 $330,597
Fuel Expense 217,363 192,357
Operating Supplies and Expenses 152,318 136,319
Purchased Transportation 89,957 82,529
Operating Taxes & Licenses 18,613 17,989
Insurance & Claims 13,526 13,006
Provision for Depreciation 2,726 2,738
Total Operating Expenses $848,242 $775,535

Operating Income form Continuing Operations $31,702 $31,753

Interest Expense $790 $901
Tax Expense 11,701 12,050
Net Income $19,211 $18,802

c)    Receivables turnover

d)    Inventory turnover

Ratio Calculation

Use Microsoft Excel to do the following calculations for ABC Company and XYZ Company for years 2003, 2004, and 2005: operating income margin, net income margin, current ratio, earnings per share, and price-to-earnings ratio.

What I am having trouble with is how to decipher what goes where and what formulas to use in the excel sheet. See the excel and formula part is confusing to me, please help.

Ratio calculation

I am a little lost here are my problems please show me how to calculate

1. In March 2005, General Electric (GE) had a book value of equity of $113 billion, 10.6 billion shares outstanding and a market price of $36 per share. GE also had a cash of $13 billion and total debt of $370 billion. Four years later in early 2009, GE had a book value of equity of $105 billion 10.5 billion shares outstanding with a market price of $10.80 per share, cash of $48 billion, and total debt of $524 billion. Over this period what was the change in GEs

a. market capitalization
b. market to book ratio
c. book debt equity ratio
d. market debt equity ratio
c. enterprise value

2. In July 2007 Apple had cash of $7.12 billion current assets of $18.75 billion current liability of $6.99 billion and inventories of $0.25 billion.

a. What was Apples current ratio
b. what was apples quick ratio
c. in July 2007 Dell had a quick ratio of 1.25 and a current ratio of 1.30. What can you say about the asset liquidity of apple relative to dell?