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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
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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2016 2015 Industry Avg Formula Used Ratio Analysis Profitability Ratios Profit Margin Basic Earning Power Return on Assets 5.78% net income/sales 13.65% EBIT/Total Asset: 5.90% Net income/total a 10.04% net income/total c Return on Equity Asset Management Ratios Inventory Turnover (Total COGS/Inventories) Days Sales Outstanding Fixed Assets Turnover 1.95 (COGS minus dep 59.85 Accounts Receiva 2.17 sales/net fixed as 1.05 sales/total assets Total Assets Turnover Patie Liquidity Ratios Current Ratio 3.25 total current asse Quick Ratio 1.75 (total current asse Debt Management Ratios Debt Ratio (Total debt-to-assets) 23.0% (notes payable + 32.2% total liabilities / tot 8.75 EBIT / interest ex Liabilities-to-assets ratio Times-interest-earned ratio EBITDA coverage ratio Market Value Ratios 2.74 (EBIT + depreciat Ratioe Earnings per share Price-to-earnings ratio Cash flow per share NA net income / num Price-to-cash flow ratio Book Value per share Market-to-book ratio 18.17 year end stock pr NA (net income + dep 9.54 year end stock pr NA total common eqi 2.00 year end stock pr 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 ucture.com
Transcribed Image Text:2016 2015 Industry Avg Formula Used Ratio Analysis Profitability Ratios Profit Margin Basic Earning Power Return on Assets 5.78% net income/sales 13.65% EBIT/Total Asset: 5.90% Net income/total a 10.04% net income/total c Return on Equity Asset Management Ratios Inventory Turnover (Total COGS/Inventories) Days Sales Outstanding Fixed Assets Turnover 1.95 (COGS minus dep 59.85 Accounts Receiva 2.17 sales/net fixed as 1.05 sales/total assets Total Assets Turnover Patie Liquidity Ratios Current Ratio 3.25 total current asse Quick Ratio 1.75 (total current asse Debt Management Ratios Debt Ratio (Total debt-to-assets) 23.0% (notes payable + 32.2% total liabilities / tot 8.75 EBIT / interest ex Liabilities-to-assets ratio Times-interest-earned ratio EBITDA coverage ratio Market Value Ratios 2.74 (EBIT + depreciat Ratioe Earnings per share Price-to-earnings ratio Cash flow per share NA net income / num Price-to-cash flow ratio Book Value per share Market-to-book ratio 18.17 year end stock pr NA (net income + dep 9.54 year end stock pr NA total common eqi 2.00 year end stock pr 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 ucture.com
Module 1 Problem Set Financial Analysis Directions: Dunder Mifflin, Inc. is a regional paper distributor located on the east coast of the United States. The CFO has requested that data for the previous years of 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) Assets 2016 Cash and cash equivalents Short-term investments Accounts Receivable Inventories Total current assets Net fixed assets Total assets $36,000 2,765 65,900 105,000 $209,665 178,000 $387.665 2015 $42,575 1,500 64,889 98,780 $207,744 175,000 $382.744 Liabilities and equity Accounts payable Accruals Notes payable Total current liabilities Long-term debt Total liabilities Common stock Retained Earnings Total common equity Total liabilities and equity $24,765 14,230 22,890 $61,885 63,780 $125,665 208,000 54,000 $262,000 $387.665 $25,000 14,000 25,400 $64,400 62,335 $126,735 203,000 53,009 $256,009 $382.744 Dunder Mifflin Inc. December 31 Income Statements (Thousands of Dollars) 2016 $389,000 285,700 23,600 34,000 $45,700 6,300 $39,400 15,760 $23.640 2015 $376,000 259,000 22,450 32,500 $62,050 6,000 $56,050 22,420 $33.630 Sales COGS except excluding depr. and amort. Depreciation and Amortization Other operating expenses EBIT Interest Expense EBT Taxes (40%) Net Income Common dividends Addition to retained earnings $17,950 $16,730 $18,900 $23,680 Other Data Year-end Stock Price # of shares (Thousands) Lease payment (Thousands of Dollars) Sinking fund payment (Thousands of Dollar 2016 $84.00 6,203 $30,000 $3,000 2015 $92.00 6,100 $31,000 $3,000 Ratio Analysis Profitability Ratios Profit Margin 2016 2015 Industry Avg Formula Used 5.78% net income/sales
Transcribed Image Text:Module 1 Problem Set Financial Analysis Directions: Dunder Mifflin, Inc. is a regional paper distributor located on the east coast of the United States. The CFO has requested that data for the previous years of 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) Assets 2016 Cash and cash equivalents Short-term investments Accounts Receivable Inventories Total current assets Net fixed assets Total assets $36,000 2,765 65,900 105,000 $209,665 178,000 $387.665 2015 $42,575 1,500 64,889 98,780 $207,744 175,000 $382.744 Liabilities and equity Accounts payable Accruals Notes payable Total current liabilities Long-term debt Total liabilities Common stock Retained Earnings Total common equity Total liabilities and equity $24,765 14,230 22,890 $61,885 63,780 $125,665 208,000 54,000 $262,000 $387.665 $25,000 14,000 25,400 $64,400 62,335 $126,735 203,000 53,009 $256,009 $382.744 Dunder Mifflin Inc. December 31 Income Statements (Thousands of Dollars) 2016 $389,000 285,700 23,600 34,000 $45,700 6,300 $39,400 15,760 $23.640 2015 $376,000 259,000 22,450 32,500 $62,050 6,000 $56,050 22,420 $33.630 Sales COGS except excluding depr. and amort. Depreciation and Amortization Other operating expenses EBIT Interest Expense EBT Taxes (40%) Net Income Common dividends Addition to retained earnings $17,950 $16,730 $18,900 $23,680 Other Data Year-end Stock Price # of shares (Thousands) Lease payment (Thousands of Dollars) Sinking fund payment (Thousands of Dollar 2016 $84.00 6,203 $30,000 $3,000 2015 $92.00 6,100 $31,000 $3,000 Ratio Analysis Profitability Ratios Profit Margin 2016 2015 Industry Avg Formula Used 5.78% net income/sales
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