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Below are the financial statements of Coco Stationary    Statement of Comprehensive Income for the Year ended 31 December 2017   $ $   Sales     305,830 Cost of goods sold     210,935 Depreciation     26,850 Earnings before interest and taxes     68,045 Interest paid     11,930 Taxable income     56,115 Taxes (35%)     19,640 Net income     36,475 Dividends   20,000   Retained earnings   16,475   Coco Stationary Statement of Financial Position as at 31 December 2017   $ Net plant and equipment 260,525 Cash 22,050 Accounts receivable 13,850 Inventory 24,650 Total current assets 60,550 Total assets 321,075 Ordinary shares 25,000 Retained earnings 167,840 Total owners' equity 192,840 Long term debt 85,000 Accounts payable 22,850 Notes payable 9,000 Other 11,385 Total current liabilities 43,235 Total liabilities after owners' equity 321,075 Calculate the following financial ratios as at 31 December 2017 a. Liquidity ratios: 1) Current Ratio 2) Quick Ratio b. Activity ratios: 1) Total asset turnover 2) Inventory turnover 3) Receiveables turnover c. Debt ratios: 1) Debt-equity ratio 2) Equity multiplier 3) Times interest earned 4) Cash coverage ratio

Below are the financial statements of Coco Stationary    Statement of Comprehensive Income for the Year ended 31 December 2017   $ $   Sales     305,830 Cost of goods sold     210,935 Depreciation     26,850 Earnings before interest and taxes     68,045 Interest paid     11,930 Taxable income     56,115 Taxes (35%)     19,640 Net income     36,475 Dividends   20,000   Retained earnings   16,475   Coco Stationary Statement of Financial Position as at 31 December 2017   $ Net plant and equipment 260,525 Cash 22,050 Accounts receivable 13,850 Inventory 24,650 Total current assets 60,550 Total assets 321,075 Ordinary shares 25,000 Retained earnings 167,840 Total owners' equity 192,840 Long term debt 85,000 Accounts payable 22,850 Notes payable 9,000 Other 11,385 Total current liabilities 43,235 Total liabilities after owners' equity 321,075 Calculate the following financial ratios as at 31 December 2017 a. Liquidity ratios: 1) Current Ratio 2) Quick Ratio b. Activity ratios: 1) Total asset turnover 2) Inventory turnover 3) Receiveables turnover c. Debt ratios: 1) Debt-equity ratio 2) Equity multiplier 3) Times interest earned 4) Cash coverage ratio

Essentials Of Investments
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
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Below are the financial statements of Coco Stationary 

 

Statement of Comprehensive Income for the Year ended 31 December 2017

  $ $  
Sales     305,830
Cost of goods sold     210,935
Depreciation     26,850
Earnings before interest and taxes     68,045
Interest paid     11,930
Taxable income     56,115
Taxes (35%)     19,640
Net income     36,475
Dividends   20,000  
Retained earnings   16,475  

Coco Stationary

Statement of Financial Position as at 31 December 2017

  $
Net plant and equipment 260,525
Cash 22,050
Accounts receivable 13,850
Inventory 24,650
Total current assets 60,550
Total assets 321,075
Ordinary shares 25,000
Retained earnings 167,840
Total owners' equity 192,840
Long term debt 85,000
Accounts payable 22,850
Notes payable 9,000
Other 11,385
Total current liabilities 43,235
Total liabilities after owners' equity 321,075

Calculate the following financial ratios as at 31 December 2017

a. Liquidity ratios:

1) Current Ratio

2) Quick Ratio

b. Activity ratios:

1) Total asset turnover

2) Inventory turnover

3) Receiveables turnover

c. Debt ratios:

1) Debt-equity ratio

2) Equity multiplier

3) Times interest earned

4) Cash coverage ratio

d. Profitability ratios:

1) Net Profit margin

2) Return on assets

3) Return on equity

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