Copy the Big Rock Candy Mountain Mining financial statements from Problem 1 in Chapter 2 into a new workbook.a. Set up a ratio worksheet similar to the one in Exhibit 3-6, page 92, and calculate all of the ratios for the firm. EхHIBIT 3-6EPI's RATIOS vs. INDUSTRY AVERAGESAвDElvis Products InternationalRatio Analysis for 2015 and 2016Industry3 Ratio2016201520164Liquidity Ratios5 Current Ratio6 Quick Ratio2.39x2.33x2.70x0.84x0.85x1.00x7Efficiency Ratios8 Inventory Turnover3.89x4.00x7.00x9 A/R Tumover9.58x9.77x10.70x10 Average Collection Period37.59 days 36.84 days33.64 days11 Fixed Asset Tumover10.67x9.95x11.20x12 Total Asset Tumover2.33x2.34x2.60x13Leverage Ratios14 Total Debt Ratio58.45%54.81%50.00%15 Long-term Debt Ratio16 LTD to Total Capitalization17 Debt to Equity18 LTD to Equity25.72%22.02%20.00%38.23%32.76%28.57%1.41x1.21x1.00x61.90%48.73%40.00%19Coverage Ratios1.97x20 Times Interest Eamed3.35х2.50x21 Cash Coverage Ratio2.23xProfitability Ratios3.65х2.80x2217.50%23 Gross Profit Margin24 Operating Profit Margin25 Net Profit Margin15.58%16.55%3.89%6.09%6.25%2.56%5.99%1.15%3.50%26 Retum on Total Assets2.68%9.10%27 Retum on Equity28 Retum on Common Equity6.45%13.25%18.20%6.45%13.25%18.20% Big Rock Candy Mountain Mining Co.Income StatementsFor the Years 2015 and 20162016$369,300285,40083,9002015$354,000281,80072,200SalesCost of GoodsGross ProfitDepreciationSelling & Admin. ExpenseOther Operating ExpenseNet Operating IncomeInterest ExpenseEarnings Before Taxes26,82023,34026,36021,8201,08032,6601,08022,9407,68524,9757,50515,4356,174$9,261Тахes9,990$14,985Net IncomeNotes:Тах Rate40.00%40.00%Shares52,100$0.2952,100S0.18Eamings per ShareBig Rock Candy Mountain Mining Co.Balance SheetFor the Year Ended December 31, 201620162015AssetsCash$14,714$1,841$41,090$10,300$550Marketable SecuritiesAccounts Receivable$42,100InventoryTotal Current AssetsGross Fixed Assets$48,490S101,440$352,600$46,910$104,555$388,000$78,020$309,980$414,535Accumulated DepreciationNet Plant & Equipment$51,200$301,400$402,840Total AssetsLiabilities & Owner's EquityAccounts PayableAccrued ExpensesTotal Current LiabilitiesLong-tem DebtTotal Liabilities$35,200$32,700$2,740$35,440$2,850$38,050$152,700$190,750$52,100$121,500$158,600$194,040$2,100Common Stock ($1.00 par)Additional Paid-in-CapitalRetained EamingsTotal Owner's EquityTotal Liab. & Owner's Equity$121,500$50,185$223,785$414,535$35,200$208,800$402,840

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Copy the Big Rock Candy Mountain Mining financial statements from Problem 1 in Chapter 2 into a new workbook. a. Set up a ratio worksheet similar to the one in Exhibit 3-6, page 92, and calculate all of the ratios for the firm.

Copy the Big Rock Candy Mountain Mining financial statements from Problem 1 in Chapter 2 into a new workbook. a. Set up a ratio worksheet similar to the one in Exhibit 3-6, page 92, and calculate all of the ratios for the firm.

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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