Cross-sectional ratio analysis:Use the following financial statements for Fox Manufacturing Company for the year ended December 31, 2003, along with the industry average ratios also given in what follows, to:A. Prepare and interpret a complete ratio analysis of the firm’s 2003 operations.B. Summarize your findings and make recommendations Hi. You may use excel if you want. Thank you! :) Fox Manufacturing CompanyIncome Statementfor the Year Ended December 31, 2003Sales revenue$600,000Less: Cost of goods soldGross profitsLess: Operating expenses460,000$140,000General and administrative expenses$30,000Depreciation expenseTotal operating expense30,00060,000Operating profitsS 80,000Less: Interest expense10,000S 70,000Net profits before taxesLess: Taxes27,100Net profits after taxes (earnings availablefor common stockholders)$ 42,900Eamings per share (EPS)$2.15Fox Manufacturing CompanyBalance SheetDecember 31, 2003Assets$ 15,0007,200CashMarketable securitiesAccounts receivable34,10082,000$138,300InventoriesTotal current assetsNet fixed assets$270,000S408,300Total assetsLiabilities and Stockholders' EquityAccounts payable$ 57,000Notes payable13,000Ассruals5,000$ 75,000Total current liabilitiesLong-term debtStockholders' equity$150,000Common stock equity (20,000 shares outstanding)Retained earnings$110,20073,100$183,300Total stockholders' equityTotal liabilities and stockholders' equityS408,300 RatioIndustry average, 2003Current ratio2.35Quick ratioInventory turnover“Average collection periodª0.874.5535.3 daysTotal asset turnover1.09Debt ratio0.300Times interest earned ratio12.3Gross profit marginOperating profit marginNet profit marginReturn on total assets (ROA)0.2020.1350.0910.099Return on common equity (ROE)0.167Earnings per share (EPS)$3.10"Based on a 360-day year and on end-of-year figures.

Solution:- A) Calculation of ratios as follows under:- Current Ratio = Current Assets/Current…

Cross-sectional ratio analysis: Use the following financial statements for Fox Manufacturing Company for the year ended December 31, 2003, along with the industry average ratios also given in what follows, to: A. Prepare and interpret a complete ratio analysis of the firm’s 2003 operations. B. Summarize your findings and make recommendations

Cross-sectional ratio analysis: Use the following financial statements for Fox Manufacturing Company for the year ended December 31, 2003, along with the industry average ratios also given in what follows, to: A. Prepare and interpret a complete ratio analysis of the firm’s 2003 operations. B. Summarize your findings and make recommendations

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Similar questions

Using the attached financial statements attached, ratios need to be calculated for all boxes that are greyed out. Please provide details of how these ratios are calculated.
a) Prepare a projected income statement for the year to 31 October Year 8. b) Calculate for Year 7 and Year 8 i) Earnings per Share ii) Degree of operating gearing iii) Degree of financial gearing iv) Degree of combined gearing c) Briefly evaluate the information produced in a & b d) Calculate the sales revenue required in Year 8 to maintain existing earnings per share
please show excel formulas
Please select THREE of the ratios listed below and perform them for years 2012 and 2011. Please interpret the data by including the following: (1) Write out the formula for each ratio you selected and show your calculations. (2) Discuss whether each ratio you selected measures liquidity or profitability and what those terms mean. (3) What factor(s) contributed to the increase or decrease from last year? Discuss whether those changes were favorable or unfavorable to the company and why? (4) What does each of your calculated ratios potentially mean for the company’s overall financial condition? Please assume the market price of the common stock on 12/31/11 was $113.40. Also, if you need any numbers from 2010 for averages, please use the following: Cash 300,000 Marketable securities 1,000,000 A/R 345,000 Inventory 647,000 Prepaids 220,000…
Forecast Income Statement and Balance Sheet Following are the income statement and balance sheet for Medtronic PLC. Note: Complete the entire question using the following Excel template: Excel Template. Then enter the answers into the provided spaces below with two decimal places. Medtronic PLC Consolidated Statement of Income $ millions, For Fiscal Year Ended April 26, 2019 Net sales $30,557 Costs and expenses Cost of products sold 9,155 Research and development expense 979 Selling, general, and administrative expense 10,418 Amortization of intangible assets 1,764 Restructuring charges, net 83 Certain litigation charges, net 166 Other operating expense, net 258 Operating profit 7,734 Other nonoperating income, net (157) Interest expense 1,444 Income before income taxes 6,447 Income tax provision 547 Net income 5,900 Net income loss attributable to noncontrolling interests (19) Net income attributable to Medtronic $5,881…
please answer within the format by providing formula the detailed workingPlease provide answer in text (Without image)Please provide answer in text (Without image)Please provide answer in text (Without image)
Compute the following profitability ratios of the company for the most recent two years, show all values in the computations: 1.Asset Turnover 2.Profit margin ratio(Net Income/Net Sales) 3.Return on total assets (Net Income/Average Total Assets) 4.Return on stockholders’ equity 5.Basic Earnings per share (EPS) Based on the results above, what conclusions can you make about the company’s overall profitability and efficient use of assets?