Below are the financial statements for RAM Furniture Bhd. for year of 2015.RAM Furniture Bhd.Balance Sheet As At 31 December 2015 (RM'000)2,400 Account payable600 Notes payableCashMarketable securitiesAccount receivablesInventoriesPrepaid expensesPlant and equipmentAccumulated depreciationTOTAL ASSETSNet SalesCost of goods soldGross profitOperating expensesNet operating incomeInterest expensesEarnings before taxesIncome taxesEARNINGS AFTER TAXES20,000 Accrued expenses24,000Current ratioQuick ratioDebt ratioTime interest earned600 MortgageTerm Loan29,000(14,600) Common sharesRetained earningsRAM Furniture Bhd.Income Statement For The Year Ended 31 December 2015 (RM'000)62,000TOTAL LIABILITIES& EQUITYIndustry Average Ratios2.55 x Inventory turnover1.70 x Average collection periodNet profit marginReturn on equity76%2.5 xa) Compute the above indicated ratios for RAM Furniture Bhd.6,0006,8007,20012,6008,8004,20016,40062,000102,000(76,000)26,000(18,000)8,000(2,000)6,000(2,400)3,6003.6 x63 days4.5%19.5%b) Evaluate the overall performance of the company as compared to the industry averageratios.

Indicated ratios are the same as Industry average ratios. So, the ratios that need to be computed…

Below are the financial statements for RAM Furniture Bhd. for year of 2015. RAM Furniture Bhd. Balance Sheet As At 31 December 2015 (RM'000) 2,400 Account payable 600 Notes payable Cash Marketable securities Account receivables Inventories Prepaid expenses Plant and equipment Accumulated depreciation TOTAL ASSETS Net Sales Cost of goods sold Gross profit Operating expenses 20,000 Accrued expenses 24,000 600 Net operating income Interest expenses Earnings before taxes Income taxes EARNINGS AFTER TAXES 29,000 (14,600) 62,000 Mortgage Term Loan Common shares Retained earnings RAM Furniture Bhd. Income Statement For The Year Ended 31 December 2015 (RM'000) TOTAL LIABILITIES & EQUITY Industry Average Ratios Current ratio Quick ratio Debt ratio Time interest earned a) Compute the above indicated ratios for RAM Furniture Bhd. 2.55 x Inventory turnover 1.70 x Average collection period 76% Net profit margin 2.5 x Return on equity 6,000 6,800 7,200 12,600 8,800 4,200 16,400 62,000 102,000 (76,000) 26,000 (18,000) 8,000 (2,000) 6,000 (2,400) 3,600 3.6 x 63 days 4.5% 19.5% b) Evaluate the overall performance of the company as compared to the industry average ratios.

Below are the financial statements for RAM Furniture Bhd. for year of 2015. RAM Furniture Bhd. Balance Sheet As At 31 December 2015 (RM'000) 2,400 Account payable 600 Notes payable Cash Marketable securities Account receivables Inventories Prepaid expenses Plant and equipment Accumulated depreciation TOTAL ASSETS Net Sales Cost of goods sold Gross profit Operating expenses 20,000 Accrued expenses 24,000 600 Net operating income Interest expenses Earnings before taxes Income taxes EARNINGS AFTER TAXES 29,000 (14,600) 62,000 Mortgage Term Loan Common shares Retained earnings RAM Furniture Bhd. Income Statement For The Year Ended 31 December 2015 (RM'000) TOTAL LIABILITIES & EQUITY Industry Average Ratios Current ratio Quick ratio Debt ratio Time interest earned a) Compute the above indicated ratios for RAM Furniture Bhd. 2.55 x Inventory turnover 1.70 x Average collection period 76% Net profit margin 2.5 x Return on equity 6,000 6,800 7,200 12,600 8,800 4,200 16,400 62,000 102,000 (76,000) 26,000 (18,000) 8,000 (2,000) 6,000 (2,400) 3,600 3.6 x 63 days 4.5% 19.5% b) Evaluate the overall performance of the company as compared to the industry average ratios.

Essentials Of Investments

11th Edition

ISBN:9781260013924

Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Chapter1: Investments: Background And Issues

Section: Chapter Questions

Problem 1PS

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Operating data for Sheridan Corporation are presented as follows. Net sales Cost of goods sold Selling expenses Administrative expenses Income tax expense Net income Net sales Cost of goods sold Gross profit Selling expenses Administrative expenses Total operating expenses Income before income taxes Income tax expense $ 2027 Prepare a schedule showing a vertical analysis for 2027 and 2026. (Round percentages to 1 decimal place, e.g. 12.1%.) Net income $ $842,800 530,964 126,420 80,066 37,926 67,424 2026 Amount $645,500 413,120 77,460 50,349 25,820 78,751 2027 SHERIDAN CORPORATION Condensed Income Statements For the Years Ended December 31 Percent % % % % % % % % $ % $ Amount 2026 Percent Ih SUPP
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