Argues how the liquidity of the company responds to the Working Capital needed to meet its short-term debts and operating expenses. Balance Sheet 2018 2019 Cash $63,000 $201,000 Accounts Receivable 199,000 305,000 Marketable Securities 81,000 42,000 Inventories 441,000 455,000 Prepaids 5,000 9,000 Total Current Assets 789,000 1,012,000 Property, Plant, and Equipment, net 858,000 858,000 Total Assets $1,647,000 $1,870,000 Account Payable $150,000 $100,000 Accruals 101,000 95,000 Total Current Liabilities $251,000 $195,000 Bonds Payable 405,000 575,000 Total Liabilities 656,000 770,000 Common Stocks 700,000 700,000 Retained Earnings 291,000 400,000 Total Stockholders’ Equity 991,000 1,100,000 Total Liabilities & Equity $1,647,000 $1,870,000 Income Statement 2018 2019 Sales $1,855,000 $2,150,000 Cost of Goods Sold 823,000 985,000 Gross Profit 1,032,000 1,165,000 Selling, General & Admin. Exp. (SG&A) 520,000 438,000 Depreciation 75,000 150,000 Earnings before Interest and Taxes (EBIT) 437,000 577,000 Interest Expense 38,000 45,000 Earnings before Taxes (EBT) 399,000 532,000 Taxes (35%) 139,650 186,200 Net Income $259,350 $345,800 Datos por acción 2018 2019 Earning per Share (EPS) $1.25 $3.00 Cash Dividends $1.15 $2.10 Market Share (Price) $8.00 $11.00 Ratio Price/Earning (P/E) 15.20 veces 8.03 veces Outstanding Shares 25,000 25,000 Razones financieras de la industria 2019 Current Ratio 8.3 veces Quick Ratio (Acid Test) 8.1 veces Inventory Turnover Ratio 7 Days Sales Outstanding (DSO) 30 días Assets Turnover Ratio 12 veces Return on Assets (ROA) 8.1 Return on Equity (ROE) 17.25% Return on Investment (ROI) 15.5% Profit Margin 3.3% Debt/Equity Ratio 50% Price /Earning Ratio (P/E) 5.1 veces
Argues how the liquidity of the company responds to the
|
|
2018 |
2019 |
|
Cash |
$63,000 |
$201,000 |
|
|
199,000 |
305,000 |
|
Marketable Securities |
81,000 |
42,000 |
|
Inventories |
441,000 |
455,000 |
|
Prepaids |
5,000 |
9,000 |
|
Total Current Assets |
789,000 |
1,012,000 |
|
Property, Plant, and Equipment, net |
858,000 |
858,000 |
|
Total Assets |
$1,647,000 |
$1,870,000 |
|
|
|
|
|
Account Payable |
$150,000 |
$100,000 |
|
Accruals |
101,000 |
95,000 |
|
Total Current Liabilities |
$251,000 |
$195,000 |
|
Bonds Payable |
405,000 |
575,000 |
|
Total Liabilities |
656,000 |
770,000 |
|
|
|
|
|
Common Stocks |
700,000 |
700,000 |
|
|
291,000 |
400,000 |
|
Total |
991,000 |
1,100,000 |
|
Total Liabilities & Equity |
$1,647,000 |
$1,870,000 |
|
Income Statement |
2018 |
2019 |
|
Sales |
$1,855,000 |
$2,150,000 |
|
Cost of Goods Sold |
823,000 |
985,000 |
|
Gross Profit |
1,032,000 |
1,165,000 |
|
Selling, General & Admin. Exp. (SG&A) |
520,000 |
438,000 |
|
|
75,000 |
150,000 |
|
Earnings before Interest and Taxes (EBIT) |
437,000 |
577,000 |
|
Interest Expense |
38,000 |
45,000 |
|
Earnings before Taxes (EBT) |
399,000 |
532,000 |
|
Taxes (35%) |
139,650 |
186,200 |
|
Net Income |
$259,350 |
$345,800 |
|
Datos por acción |
2018 |
2019 |
|
Earning per Share (EPS) |
$1.25 |
$3.00 |
|
Cash Dividends |
$1.15 |
$2.10 |
|
Market Share (Price) |
$8.00 |
$11.00 |
|
Ratio Price/Earning (P/E) |
15.20 veces |
8.03 veces |
|
Outstanding Shares |
25,000 |
25,000 |
|
Razones financieras de la industria |
2019 |
|
|
8.3 veces |
|
Quick Ratio (Acid Test) |
8.1 veces |
|
Inventory Turnover Ratio |
7 |
|
Days Sales Outstanding (DSO) |
30 días |
|
Assets Turnover Ratio |
12 veces |
|
Return on Assets (ROA) |
8.1 |
|
Return on Equity (ROE) |
17.25% |
|
|
15.5% |
|
Profit Margin |
3.3% |
|
Debt/Equity Ratio |
50% |
|
Price /Earning Ratio (P/E) |
5.1 veces |
SOLUTION-
WORKING CAPITAL MEANS THE CAPITAL OF A BUSINESS WHICH IS USED INN ITS DAY TO DAY TRADING OPERATIONS , CALCULATED AS THE CURRENT ASSETS MINUS CURRENT LIABILITIES .
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