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Income Statement & Balance Sheet of Volkswagen Balance Sheet ($ in Millions) Income Statement ($ in Millions) Assets 1998 Liabilities and 2018 Owners' Equity 2018 Current Assets Current Liabilities Sales 5200 Cash 400 Accounts Payable 500 Cost of Goods Sold 1100 Accounts Receivable 300 Notes Payable 600 Administrative Expenses 700 Inventory 400 Total Current Liabilities 1100 Depreciation 284 Total Current 1,100 Long-Term Liabilities Earnings Before Interest and Taxes Assets 3116 Long-Term Debt 500 Interest Expense 80 Fixed Assets Total Long-Term Liabilities 500 Taxable Income 3036 Property, Plant, and Equipment 2000 Owners' Equity Taxes 999 Common Stock ($1 Par) Less Accumulated Depreciation 300 600 Net Income 2037 Net Fixed Assests 1700 Capital Surplus 500 Dividends 1373 Retained Earnings 100 Addition to Retained 663 Earnings Total Owners' Equity 1200 Other Information Total Assets 2,800 Total Liab. and Owners' 2800 Number of Shares 600 Equity Outstanding (Milions) Price per Share 3.56 From above given Income Statement and Balance Sheet, Calculate the following Ratios and also give your Critical Analysis either Volkswagen Financial Position is Sound or not? Current Ratio Times Interest Earned Return on Equity (ROE) Quick Ratio Debt Ratio Return on Asset Receivables Turnover and Days' Receivables Debt to Equity Ratio Price/Earnings Ratio Inventory Turnover and Days' Inventory Total Asset Turnover Market-to-Book Ratio Fixed Assets Turnover Profit Margin (EPS) Earning Per Share

Income Statement & Balance Sheet of Volkswagen Balance Sheet ($ in Millions) Income Statement ($ in Millions) Assets 1998 Liabilities and 2018 Owners' Equity 2018 Current Assets Current Liabilities Sales 5200 Cash 400 Accounts Payable 500 Cost of Goods Sold 1100 Accounts Receivable 300 Notes Payable 600 Administrative Expenses 700 Inventory 400 Total Current Liabilities 1100 Depreciation 284 Total Current 1,100 Long-Term Liabilities Earnings Before Interest and Taxes Assets 3116 Long-Term Debt 500 Interest Expense 80 Fixed Assets Total Long-Term Liabilities 500 Taxable Income 3036 Property, Plant, and Equipment 2000 Owners' Equity Taxes 999 Common Stock ($1 Par) Less Accumulated Depreciation 300 600 Net Income 2037 Net Fixed Assests 1700 Capital Surplus 500 Dividends 1373 Retained Earnings 100 Addition to Retained 663 Earnings Total Owners' Equity 1200 Other Information Total Assets 2,800 Total Liab. and Owners' 2800 Number of Shares 600 Equity Outstanding (Milions) Price per Share 3.56 From above given Income Statement and Balance Sheet, Calculate the following Ratios and also give your Critical Analysis either Volkswagen Financial Position is Sound or not? Current Ratio Times Interest Earned Return on Equity (ROE) Quick Ratio Debt Ratio Return on Asset Receivables Turnover and Days' Receivables Debt to Equity Ratio Price/Earnings Ratio Inventory Turnover and Days' Inventory Total Asset Turnover Market-to-Book Ratio Fixed Assets Turnover Profit Margin (EPS) Earning Per Share

FINANCIAL ACCOUNTING
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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Income Statement & Balance Sheet of Volkswagen Balance Sheet ($ in Millions) Income Statement ($ in Millions) Assets 1998 Liabilities and 2018 Owners' Equity 2018 Current Assets Current Liabilities Sales 5200 Cash 400 Accounts Payable 500 Cost of Goods Sold 1100 Accounts Receivable 300 Notes Payable 600 Administrative Expenses 700 Inventory 400 Total Current Liabilities 1100 Depreciation 284 Total Current 1,100 Long-Term Liabilities Earnings Before Interest and Taxes Assets 3116 Long-Term Debt 500 Interest Expense 80 Fixed Assets Total Long-Term Liabilities 500 Taxable Income 3036 Property, Plant, and Equipment 2000 Owners' Equity Таxes 999 Less Accumulated 300 Common Stock ($1 Par) 600 Depreciation Net Income 2037 Net Fixed Assests 1700 Capital Surplus 500 Dividends 1373 Retained Earnings Addition to Retained Earnings 100 663 Total Owners' Equity 1200 Other Information Total Assets 2,800 Total Liab. and Owners' 2800 Number of Shares 600 Equity Outstanding (Milions) Price per Share 3.56 From above given Income Statement and Balance Sheet, Calculate the following Ratios and also give your Critical Analysis either Volkswagen Financial Position is Sound or not? Current Ratio Times Interest Earned Return on Equity (ROE) Quick Ratio Debt Ratio Return on Asset Receivables Turnover and Days' Receivables Debt to Equity Ratio Price/Earnings Ratio Inventory Turnover and Days' Inventory Total Asset Turnover Market-to-Book Ratio Fixed Assets Turnover Profit Margin (EPS) Earning Per Share
Transcribed Image Text:Income Statement & Balance Sheet of Volkswagen Balance Sheet ($ in Millions) Income Statement ($ in Millions) Assets 1998 Liabilities and 2018 Owners' Equity 2018 Current Assets Current Liabilities Sales 5200 Cash 400 Accounts Payable 500 Cost of Goods Sold 1100 Accounts Receivable 300 Notes Payable 600 Administrative Expenses 700 Inventory 400 Total Current Liabilities 1100 Depreciation 284 Total Current 1,100 Long-Term Liabilities Earnings Before Interest and Taxes Assets 3116 Long-Term Debt 500 Interest Expense 80 Fixed Assets Total Long-Term Liabilities 500 Taxable Income 3036 Property, Plant, and Equipment 2000 Owners' Equity Таxes 999 Less Accumulated 300 Common Stock ($1 Par) 600 Depreciation Net Income 2037 Net Fixed Assests 1700 Capital Surplus 500 Dividends 1373 Retained Earnings Addition to Retained Earnings 100 663 Total Owners' Equity 1200 Other Information Total Assets 2,800 Total Liab. and Owners' 2800 Number of Shares 600 Equity Outstanding (Milions) Price per Share 3.56 From above given Income Statement and Balance Sheet, Calculate the following Ratios and also give your Critical Analysis either Volkswagen Financial Position is Sound or not? Current Ratio Times Interest Earned Return on Equity (ROE) Quick Ratio Debt Ratio Return on Asset Receivables Turnover and Days' Receivables Debt to Equity Ratio Price/Earnings Ratio Inventory Turnover and Days' Inventory Total Asset Turnover Market-to-Book Ratio Fixed Assets Turnover Profit Margin (EPS) Earning Per Share
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