Liquidity, Profitability, Leverage ,
- The
Balance Sheet and Income Statement Data for Galaxy Computer Co. is given below
BALANCE SHEET |
||
Assets |
2001 |
2000 |
Cash |
7,282 |
9,000 |
Short term investment |
0 |
48,600 |
Acc. Receivable |
632,160 |
351,200 |
Inventories |
1,287,360 |
715,200 |
Total current assets |
1,926,802 |
1,124,000 |
Fixed Assets |
||
Plant & Equipment |
1,202,950 |
491,000 |
Less: Acc dep |
263,160 |
146,200 |
939,790 |
344,800 |
|
Total assets |
2,866,592 |
1,468,800 |
Liabilities & Equities |
||
Current liability |
||
A/c Payable |
524,160 |
145,600 |
Notes payable |
720,000 |
200,000 |
Accruals |
489,600 |
136,000 |
total Current liability |
1,733,760 |
481,600 |
Long-term debt |
1,000,000 |
323,432 |
Common Stock |
460,000 |
460,000 |
|
-327,168 |
203,768 |
1,132,832 |
987,200 |
|
Total equities |
2,866,592 |
1,468,800 |
Income Statement |
||
Sales |
5,834,400 |
3,432,000 |
Cost of Goods Sold |
5,728,000 |
2,864,000 |
Other expense |
680,000 |
340,000 |
dep |
116,960 |
18,900 |
EBIT/ LOSS |
-690,560 |
209,100 |
Interest expense |
176,000 |
62,500 |
EBT/ LOSS |
-866,560 |
146,600 |
tax |
-346624 |
58640 |
net income/loss |
-519,936 |
87,960 |
Required:
Compute at least two ratios in each area (numbered 1 to 6 below) for both years. (Note: Do not take average of two years to calculate any formula, work on individual year figure for all calculation. For example, do not take average inventory or average receivable)
Liquidity, Profitability, Leverage , Efficiency ratio/Asset Activity, Coverage ratio, Market ratio
Based on your calculations in part a, interpret and give your comments about the company’s liquidity, profitability, and solvency
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