ASSETS cash and cash equivalents Accounts receivable Inventories, Prepaid expenses Accumulated tax prepayments Current assets

Fixed assets of Cost Less: Accumulated depreciation Net fixed assets Investment, long term Other assets, long term Total assets

2010 $178 678 1,329 21 35 $2,241 1,596 -857 $739 65 205 $3,250

100 100 100 100 100 100 100 100 100 100 100 100

2011 $175 740 1,235 17 29 $2,196 1,538 -791 $747

98.3146067 109.144543 92.9270128 80.952381 82.8571429 97.9919679 96.3659148 92.2987165 101.082544 0 205 100 $3,148 96.8615385

2012 185 793 1275 14 23 2290 1541 -805 736 0 203 3229

LIABILITIES AND SHAREHOLDERS EQUITY 2010 Bank loans and notes payable $448 Accounts payable 148 Accrued taxes 36 Other accrued liabilities 191 Current liabilities $823 Long-term debt 631 Shareholders' equity Common stock, $1 par value 421 Additional paid-in capital 361 Retained earing 1,014 Total shareholders' equity $1,796 Total liabilities and shareholders' equity $3,250 Required: 1. common size statement 2. Index base year 2012 3. percent growth

2011 $356 136 127 164 $783 627 421 361 956 $1,738 $3,148

2012 346 166 131 170 813 635 421 361 999 1781 3229

$103.93 $116.96 $95.94 $66.67 $65.71 $102.19 $96.55 $93.93 $99.59 $0.00 $99.02 $99.35

Problems 1. The data for various companies in the same industry are as follows: COMPANY C $8 6 0.8

Sales (in millions) Total assets (in millions) Net income (in millions)

A $10 8 0.7

B $20 10 2

D $5 2.5 0.5

E $12 4 1.5

F $17 8 1

Determine the total asset turnover, net profit margin, and earning power for each of the companies.

$72 38.5 6.5 Asset Turnover $1.87 Profit Margin $0.09

2. Cordillera Carson Company has the following balace sheet and income statement for 2011 (in thousand): BALANCE SHEET Cash Accounts receivable Inventories Current assets Net fixed assets Total assets Accounts payable Accruals Short-term loans Current liabilities Long-term debt Net worth Total liabilities and net worth INCOME STATEMENT Net sales (all credit) Cost of goods sold Gross profit Selling & general expenditure Interest expenses Profits before taxes Taxes Profit after taxes

$400 1,300 2,100 $3,800 3,320 $7,120 $320 $260 1,100 $1,680 2,000 3,440 $7,120

On the basis of this information, compute (a) the current ratio, (b) the acid-test ratio, (c ) the average collection period, (d) the inventory turnover ratio, the debt-to-net-worth ratio, (f) the long-term debt-to-total-capitalization gross profit margin, (h) the net profit margin, and (i) the return on equity.

011 (in thousand):

$12,680 8,930 $3,750 2,230 460 $1,060 390 $670

g-term debt-to-total-capitalization ratio, (g) the

3. The follwing informaton is avaiable on the Vanier Corporation: BALANCE SHEET AS OF DECEMBER 31, 2011 (in thiusand) Cash and marketable securities $500 Accounts payable Accounts receivable ? Bank loan Inventories ? Accruals Current assets Current liabilities Long-term debt Net fixed assets ? Common stock and retained earning Total liabilities and equity

Total assets

INCOME STATEMENT FOR 2011 (in thousand) Credit sales Cost of goods sold Gross profit Selling and administrative expenses Interest expenes Profit before taxes Taxes (44% rate) Profit after taxes OTHER INFORMATION Current ratio Depreciation Net profit margin Total liabilities/shareholders' equity Average collection period Inventory turnover ratio

$8,000 ? ? ? 400 ? ? ?

3 to 1 $500 7% 1 to 1 45 days 3 to 1

Assuming that sales and production are steady throughouta 360-day year, complete the balance sheet and income statemet for Vanier Corporation.

$400 ? 200 ? 2,650 3,750

ance sheet and income statemet

Complete the balance sheet and sales information in the table, using the following financial data.

Debt ratio: 50% Quick ratio:0.80 Toal asset turnover: 1.5 DSO: 36 days Gross porfit margin on sales: (sales -COGS)= 25$ Inventory turnover ratio: 5 All calullations are based on 360 day-year

Balance Sheet: CASh A/R Inventories Fixed Assets Total sales Sales ? ? ? ? 300,000 ? A/P Long term Debt Common Stock Retained Earnings Total Liablities & equity COGS ? 60,000 ? 97,500 ? ?

Ace indutries has a Caequal to 3 millions. The company's CR is 1.5, and its quick ratio is 1.0. What is the firms level of CL? What Is the firms level of inventories\? BB has an equity multiplier of 2.4. the companys assets are finances with some combination of long term debt and common equity. Whats the companys debt ratio. K company had a quick ratio of 1.4, CR of 3.0 an inventory turnover of 6 times, total CA of 810,000/ cash and marketable securities of 120,000/-. What were K's annual sales and DSO

ories\?

combination of long

otal CA of 810,000/ O