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
Survey of Accounting (Accounting I)
8th Edition
ISBN:9781305961883
Author:Carl Warren
Publisher:Carl Warren
Chapter9: Metric-analysis Of Financial Statements
Section: Chapter Questions
Problem 9.1E
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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 | ||
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 | ||
16,475 |
Coco Stationary
$ | |
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)
3)
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