P13-9 (Algo) Computing and Analyzing Ratios LO 13-4, 13-5, 13-6, 13-7, 13-8 The financial statements for Lainey's Famous Pizzo are below. Lainey's operates more than 250 locations in 30 statica and 11 countrica. LADY'S FAMOUS PIZZA, INCOPRORATED Consolidated statements of operations (amounts in thousands, except for per share data) Year 2 Year 1 Restaurant cales Royalties from Licensing agr Domestic franchi International franchise revenue Total reverse Costs and expences: Food, beverage, and paper supplies Labor Direct operating and accupancy cost of sales several and adinistrative Depreciation and amortization Pre-casts Loss on Separent of property and equipment Store closure costs Litigation, settlement, and other co total costs and exp Interest expense, not Income before income tax Income tax (benefit)/provision Net income per common share: Basic weighted average shares used in calculating net incase per conson share Basic Diluted LAINEY'S FAMOUS PIZZA, INCORPORATED A Consolidated Balance Sheets (in thousands, accept for share data) Current assets: cash and cash equivalent Receivables Inventories Prepaid rest other prepaid exp Total current assets Property and equipment, not Noncurrent deferred tax asset, not 720,511 142,373 12,012 579 1, 213,120 32 700 1,4 (4,819) (2,171) $7, Year 2 $2,1 2,998 54,145 2,433 other intangibles, not other asset Total assets Liabilities and stay Current liabilities: Accounts payable $18,35 $1, Accrued compensation and benefits Deferred rest credits other accrued liabilitie ift card liability Store closure reserve Total curren Long-term debt other a Deferred rest credits, not of current portion Income taxes payable, not of cuprin Commitments and contingencie Stockholders' equity Common stack-se.et par value, share authorized, 28,00, and 28,2, shares issued and outstanding at end of year, and Year 2, Accional paid-in capital Total stockholquity Total liabilities and stockholderi 15,7 18,6 33,937 335 18,725 1, 205,315 $8.19 2, Required: 1. Compute the following ratics for Year 3 using information from the company's financial statements. Assume a market price per share of $1.40. Note: Round your answers to 2 decimal places. Enter percentage answers rounded to 2 decimal places (.0.1234 should be entered as 12.34). a Ratum on qu b. Net profit margin c. Inventory turnover ratio d. Current Quick Debt-to-equity ratio Price earnings ratio

Managerial Accounting
15th Edition
ISBN:9781337912020
Author:Carl Warren, Ph.d. Cma William B. Tayler
Publisher:Carl Warren, Ph.d. Cma William B. Tayler
Chapter16: Financial Statement Analysis
Section: Chapter Questions
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P13-9 (Algo) Computing and Analyzing Ratios LO 13-4, 13-5, 13-6, 13-7, 13-8
The financial statements for Lainey's Famous Pizzo are below. Lainey's operates more than 250 locations in 30 statica and 11 countrica.
LADY'S FAMOUS PIZZA, INCOPRORATED
Consolidated statements of operations
(amounts in thousands, except for per share data)
Year 2
Year 1
Restaurant cales
Royalties from Licensing agr
Domestic franchi
International franchise revenue
Total reverse
Costs and expences:
Food, beverage, and paper supplies
Labor
Direct operating and accupancy
cost of sales
several and adinistrative
Depreciation and amortization
Pre-casts
Loss on Separent of property and equipment
Store closure costs
Litigation, settlement, and other co
total costs and exp
Interest expense, not
Income before income tax
Income tax (benefit)/provision
Net income per common share:
Basic
weighted average shares used in calculating net incase per conson
share
Basic
Diluted
LAINEY'S FAMOUS PIZZA, INCORPORATED A
Consolidated Balance Sheets
(in thousands, accept for share data)
Current assets:
cash and cash equivalent
Receivables
Inventories
Prepaid rest
other prepaid exp
Total current assets
Property and equipment, not
Noncurrent deferred tax asset, not
720,511
142,373
12,012
579
1,
213,120
32
700
1,4
(4,819)
(2,171)
$7,
Year 2
$2,1
2,998
54,145
2,433
other intangibles, not
other asset
Total assets
Liabilities and stay
Current liabilities:
Accounts payable
$18,35
$1,
Accrued compensation and benefits
Deferred rest credits
other accrued liabilitie
ift card liability
Store closure reserve
Total curren
Long-term debt
other a
Deferred rest credits, not of current portion
Income taxes payable, not of cuprin
Commitments and contingencie
Stockholders' equity
Common stack-se.et par value, share
authorized, 28,00,
and 28,2, shares issued
and outstanding at end of year, and Year 2,
Accional paid-in capital
Total stockholquity
Total liabilities and stockholderi
15,7
18,6
33,937
335
18,725
1,
205,315
$8.19
2,
Required:
1. Compute the following ratics for Year 3 using information from the company's financial statements. Assume a market price per share
of $1.40.
Note: Round your answers to 2 decimal places. Enter percentage answers rounded to 2 decimal places (.0.1234 should be
entered as 12.34).
a Ratum on qu
b. Net profit margin
c. Inventory turnover ratio
d. Current
Quick
Debt-to-equity ratio
Price earnings ratio
Transcribed Image Text:P13-9 (Algo) Computing and Analyzing Ratios LO 13-4, 13-5, 13-6, 13-7, 13-8 The financial statements for Lainey's Famous Pizzo are below. Lainey's operates more than 250 locations in 30 statica and 11 countrica. LADY'S FAMOUS PIZZA, INCOPRORATED Consolidated statements of operations (amounts in thousands, except for per share data) Year 2 Year 1 Restaurant cales Royalties from Licensing agr Domestic franchi International franchise revenue Total reverse Costs and expences: Food, beverage, and paper supplies Labor Direct operating and accupancy cost of sales several and adinistrative Depreciation and amortization Pre-casts Loss on Separent of property and equipment Store closure costs Litigation, settlement, and other co total costs and exp Interest expense, not Income before income tax Income tax (benefit)/provision Net income per common share: Basic weighted average shares used in calculating net incase per conson share Basic Diluted LAINEY'S FAMOUS PIZZA, INCORPORATED A Consolidated Balance Sheets (in thousands, accept for share data) Current assets: cash and cash equivalent Receivables Inventories Prepaid rest other prepaid exp Total current assets Property and equipment, not Noncurrent deferred tax asset, not 720,511 142,373 12,012 579 1, 213,120 32 700 1,4 (4,819) (2,171) $7, Year 2 $2,1 2,998 54,145 2,433 other intangibles, not other asset Total assets Liabilities and stay Current liabilities: Accounts payable $18,35 $1, Accrued compensation and benefits Deferred rest credits other accrued liabilitie ift card liability Store closure reserve Total curren Long-term debt other a Deferred rest credits, not of current portion Income taxes payable, not of cuprin Commitments and contingencie Stockholders' equity Common stack-se.et par value, share authorized, 28,00, and 28,2, shares issued and outstanding at end of year, and Year 2, Accional paid-in capital Total stockholquity Total liabilities and stockholderi 15,7 18,6 33,937 335 18,725 1, 205,315 $8.19 2, Required: 1. Compute the following ratics for Year 3 using information from the company's financial statements. Assume a market price per share of $1.40. Note: Round your answers to 2 decimal places. Enter percentage answers rounded to 2 decimal places (.0.1234 should be entered as 12.34). a Ratum on qu b. Net profit margin c. Inventory turnover ratio d. Current Quick Debt-to-equity ratio Price earnings ratio
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