20162015 Industry Avg Formula UsedRatio AnalysisProfitability RatiosProfit MarginBasic Earning PowerReturn on Assets5.78% net income/sales13.65% EBIT/Total Asset:5.90% Net income/total a10.04% net income/total cReturn on EquityAsset Management RatiosInventory Turnover (Total COGS/Inventories)Days Sales OutstandingFixed Assets Turnover1.95 (COGS minus dep59.85 Accounts Receiva2.17 sales/net fixed as1.05 sales/total assetsTotal Assets TurnoverPatieLiquidity RatiosCurrent Ratio3.25 total current asseQuick Ratio1.75 (total current asseDebt Management RatiosDebt Ratio (Total debt-to-assets)23.0% (notes payable +32.2% total liabilities / tot8.75 EBIT / interest exLiabilities-to-assets ratioTimes-interest-earned ratioEBITDA coverage ratioMarket Value Ratios2.74 (EBIT + depreciatRatioeEarnings per sharePrice-to-earnings ratioCash flow per shareNA net income / numPrice-to-cash flow ratioBook Value per shareMarket-to-book ratio18.17 year end stock prNA (net income + dep9.54 year end stock prNA total common eqi2.00 year end stock prPerform a Dupont Analysis for Dunder Mifflin, Inc. for 2015 and 2016Hint: Use the Product(...) function of Excel for ROEROE =x TA Turnover x Equity MultiplierPM20162015Perform a Common Size Analysis of the balance sheets and income statements for Dunder Mifflinucture.com Module 1 Problem Set Financial AnalysisDirections: Dunder Mifflin, Inc. is a regional paper distributor located on the eastcoast of the United States. The CFO has requested that data for the previous yearsof 2015 and 2016 be compared to industry averages as well as previous activity.Using the financial data provided below, calculated the requested ratios and analysis.Use the functions of Excel for calculating your data.Dunder Mifflin, Inc.December 31 Balance Sheets(Thousands of Dollars)Assets2016Cash and cash equivalentsShort-term investmentsAccounts ReceivableInventoriesTotal current assetsNet fixed assetsTotal assets$36,0002,76565,900105,000$209,665178,000$387.6652015$42,5751,50064,88998,780$207,744175,000$382.744Liabilities and equityAccounts payableAccrualsNotes payableTotal current liabilitiesLong-term debtTotal liabilitiesCommon stockRetained EarningsTotal common equityTotal liabilities and equity$24,76514,23022,890$61,88563,780$125,665208,00054,000$262,000$387.665$25,00014,00025,400$64,40062,335$126,735203,00053,009$256,009$382.744Dunder Mifflin Inc.December 31 Income Statements(Thousands of Dollars)2016$389,000285,70023,60034,000$45,7006,300$39,40015,760$23.6402015$376,000259,00022,45032,500$62,0506,000$56,05022,420$33.630SalesCOGS except excluding depr. and amort.Depreciation and AmortizationOther operating expensesEBITInterest ExpenseEBTTaxes (40%)Net IncomeCommon dividendsAddition to retained earnings$17,950$16,730$18,900$23,680Other DataYear-end Stock Price# of shares (Thousands)Lease payment (Thousands of Dollars)Sinking fund payment (Thousands of Dollar2016$84.006,203$30,000$3,0002015$92.006,100$31,000$3,000Ratio AnalysisProfitability RatiosProfit Margin20162015 Industry Avg Formula Used5.78% net income/sales

Ratio Analysis It is important for the business entity to calculate the required percentage of ratio…

Perform a Dupont Analysis for Dunder Mifflin, Inc. for 2015 and 2016 Hint: Use the Product(...) function of Excel for ROE ROE = x TA Turnover x Equity Multiplier PM 2016 2015 Perform a Common Size Analysis of the balance sheets and income statements for Dunder Mifflin

Perform a Dupont Analysis for Dunder Mifflin, Inc. for 2015 and 2016 Hint: Use the Product(...) function of Excel for ROE ROE = x TA Turnover x Equity Multiplier PM 2016 2015 Perform a Common Size Analysis of the balance sheets and income statements for Dunder Mifflin

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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