What is the Financial Performance and Financial Position for:-a. Liquidityb. Profitabilityc. Leverage BnB Construction Inc.Income Statement (Millions of Dollars)BnB Construction Inc.Balance Sheet (Millions of Dollars)2021 Est.20202019Net Sales4,0003,0002,85020212021Assets20202019Liabilities20202019EstEstOperating Costs3,1002,3002,100EBITD900.00700750Cash and Cash151015Accounts payable1156030Depreciation11010090EquivalentsAmertizatonDepreciation and AmortizationShort-TermOverdrafts11511060investments11010090EBITD790600660Accounts Receivable420375315Аccruals260140130Interest1008860Inventories700615415Total Current Liabilities490310220Earnings Before Taxes690512600Long-Term Bonds andTotal Current Assets1,1451,000Taxes (40%)276204.82408101300754580New LoanNet Income Before preferred Dividends414307.2360Net Plant and18841,190Preferred Dividends444870Total Debt17901,064.00800EquipmentNet Income410.0303.2356.0Preferred Stock404040Common Dividends57.557.553Common Stock130130130Addition to retained Earnings352.50245.70303.0Retained Earnings1069956710Total Common Equity11991086840Total Liabilities and$Total AssetsPer Share Date2021202020193,0292,1901,680Equity3,0292,1901,680Common Stock Price28.0 $23.0026.00Earnings Per Share (EPS)Dividend Per Share (DPS)Book Value Per Share (BVPS)???6.06 $7.12Est. Estimate????1.15 $1.06????21.7216.80Cash Flow Per Share????8.06 S8.92 2021IndustryRatio AnalysisEst.20202019AverageLiquidity RatiosCurrent Ratio (times)4. 2Quick Ratio (times)2.1Asset Management RatiosAverage sales/day9Inventory Turnover Ratio (times)9Days Sales Outstanding (days)36Fixed Assets Turnover Ratio (times)3Total Asset Turnover Ratio1. 8Debt Management RatiosTotal Debt to Total Assets (%)40Times Interest Earned (times)6.Debt to Equity Ratio (%)1Profitability RatiosProfit Margin on Sales (%)8Earning Power (%)17.2Return on Total Assets (%)12Return on Common Equity (%)25Market Value Ratios Price/Earnings RatioPrice/Earnings Ratio (times)12.5Price/Cash Flow Ratio (times)6. 8Market /Book Value Ratio (times)1.7

Liquidity Ratio: It shows how much the enterprise is liquidate or for how much time it can complete…

2021 Industry Average Ratio Analysis Est. 2020 2019 Liquidity Ratios Current Ratio (times) 4. 2 Quick Ratio (times) 2.1 Asset Management Ratios Average sales/day 9. Inventory Turnover Ratio (times) 9 Days Sales Outstanding (days) 36 Fixed Assets Turnover Ratio (times) 3 Total Asset Turnover Ratio 1.8 Debt Management Ratios Total Debt to Total Assets (%) 40 Times Interest Earned (times) 6 Debt to Equity Ratio (%) Profitability Ratios Profit Margin on Sales (%) 8. Earning Power (%) 17.2 Return on Total Assets (%) 12 Return on Common Equity (%) 25 Market Value Ratios Price/Earnings Ratio Price/Earnings Ratio (times) 12.5 Price/Cash Flow Ratio (times) 6. 8 Market /Book Value Ratio (times) 1.7

2021 Industry Average Ratio Analysis Est. 2020 2019 Liquidity Ratios Current Ratio (times) 4. 2 Quick Ratio (times) 2.1 Asset Management Ratios Average sales/day 9. Inventory Turnover Ratio (times) 9 Days Sales Outstanding (days) 36 Fixed Assets Turnover Ratio (times) 3 Total Asset Turnover Ratio 1.8 Debt Management Ratios Total Debt to Total Assets (%) 40 Times Interest Earned (times) 6 Debt to Equity Ratio (%) Profitability Ratios Profit Margin on Sales (%) 8. Earning Power (%) 17.2 Return on Total Assets (%) 12 Return on Common Equity (%) 25 Market Value Ratios Price/Earnings Ratio Price/Earnings Ratio (times) 12.5 Price/Cash Flow Ratio (times) 6. 8 Market /Book Value Ratio (times) 1.7

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Question

What is the Financial Performance and Financial Position for:-
a. Liquidity
b. Profitability
c. Leverage

BnB Construction Inc.
Income Statement (Millions of Dollars)
BnB Construction Inc.
Balance Sheet (Millions of Dollars)
2021 Est.
2020
2019
Net Sales
4,000
3,000
2,850
2021
2021
Assets
2020
2019
Liabilities
2020
2019
Est
Est
Operating Costs
3,100
2,300
2,100
EBITD
900.00
700
750
Cash and Cash
15
10
15
Accounts payable
115
60
30
Depreciation
110
100
90
Equivalents
Amertizaton
Depreciation and Amortization
Short-Term
Overdrafts
115
110
60
investments
110
100
90
EBITD
790
600
660
Accounts Receivable
420
375
315
Аccruals
260
140
130
Interest
100
88
60
Inventories
700
615
415
Total Current Liabilities
490
310
220
Earnings Before Taxes
690
512
600
Long-Term Bonds and
Total Current Assets
1,145
1,000
Taxes (40%)
276
204.8
240
810
1300
754
580
New Loan
Net Income Before preferred Dividends
414
307.2
360
Net Plant and
1884
1,190
Preferred Dividends
4
4
4
870
Total Debt
1790
1,064.00
800
Equipment
Net Income
410.0
303.2
356.0
Preferred Stock
40
40
40
Common Dividends
57.5
57.5
53
Common Stock
130
130
130
Addition to retained Earnings
352.50
245.70
303.0
Retained Earnings
1069
956
710
Total Common Equity
1199
1086
840
Total Liabilities and
$
Total Assets
Per Share Date
2021
2020
2019
3,029
2,190
1,680
Equity
3,029
2,190
1,680
Common Stock Price
28.0 $
23.00
26.00
Earnings Per Share (EPS)
Dividend Per Share (DPS)
Book Value Per Share (BVPS)
???
6.06 $
7.12
Est. Estimate
????
1.15 $
1.06
????
21.72
16.80
Cash Flow Per Share
????
8.06 S
8.92

2021
Industry
Ratio Analysis
Est.
2020
2019
Average
Liquidity Ratios
Current Ratio (times)
4. 2
Quick Ratio (times)
2.1
Asset Management Ratios
Average sales/day
9
Inventory Turnover Ratio (times)
9
Days Sales Outstanding (days)
36
Fixed Assets Turnover Ratio (times)
3
Total Asset Turnover Ratio
1. 8
Debt Management Ratios
Total Debt to Total Assets (%)
40
Times Interest Earned (times)
6.
Debt to Equity Ratio (%)
1
Profitability Ratios
Profit Margin on Sales (%)
8
Earning Power (%)
17.2
Return on Total Assets (%)
12
Return on Common Equity (%)
25
Market Value Ratios Price/Earnings Ratio
Price/Earnings Ratio (times)
12.5
Price/Cash Flow Ratio (times)
6. 8
Market /Book Value Ratio (times)
1.7

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