PROBLEM II Financial Ratios (Adapted from MAS Reviewer by Aljohn Lee) Lyn merchandising has 1,000,000 common shares with each share priced at P8. In 2017, the company declared dividends of PO.10 per share. The balance sheet at the end of 2017 showed approximately the same amounts as that at the end of 2016. The financial statements of Lyn Merchandising are as follows: Lyn Merchandising, Income Statement for 2017 (In thousands) P4,700 (2,300) Sales Cost of Goods Sold Gross Profit P2,400 Operating Expenses: Depreciation P320 Others 1,230 (1,550) EBIT P850 (150) Interest Expense Earnings before tax P700 Income Tax (280) NET INCOME P420 Lyn Merchandising, Balance Sheet at December 31, 2017 (In Thousands) ASSETS LIABILITIES and SHE Cash P220 Accounts Payable Accrued expenses P190 Accounts Rec. 440 180 Inventory 410 Total Current Ass. P1,070 5,600 Total Current Liab. Long-term debt Common stocks P370 1,960 1,810 430 PPE Accum, Dep. Total Assets (2,100) P4,570 Retained earnings Total Liab and SHE P4.570 REQUIRED: (Round answers to two decimal places) 1. Current Ratio 11. Earnings Per Share 12. P/E ratio 13. Dividends Yield 2. Acid-test Ratio 3. Accounts Receivable Turnover 4. Inventory Turnover 5. Gross Profit Margin 6. Operating Profit Margin 7. Return on Sales 8. BOA-Operational 9. BOA-Total Management performance 10. Return on Equity 14. Payout Ratio 15. Debt Ratio 16. Debt-Equity ratio 17. Times interest earned 18. Defensive Interval ratio 19. Cash flow to total debt 20. Cash flow margin
PROBLEM II Financial Ratios (Adapted from MAS Reviewer by Aljohn Lee) Lyn merchandising has 1,000,000 common shares with each share priced at P8. In 2017, the company declared dividends of PO.10 per share. The balance sheet at the end of 2017 showed approximately the same amounts as that at the end of 2016. The financial statements of Lyn Merchandising are as follows: Lyn Merchandising, Income Statement for 2017 (In thousands) P4,700 (2,300) Sales Cost of Goods Sold Gross Profit P2,400 Operating Expenses: Depreciation P320 Others 1,230 (1,550) EBIT P850 (150) Interest Expense Earnings before tax P700 Income Tax (280) NET INCOME P420 Lyn Merchandising, Balance Sheet at December 31, 2017 (In Thousands) ASSETS LIABILITIES and SHE Cash P220 Accounts Payable Accrued expenses P190 Accounts Rec. 440 180 Inventory 410 Total Current Ass. P1,070 5,600 Total Current Liab. Long-term debt Common stocks P370 1,960 1,810 430 PPE Accum, Dep. Total Assets (2,100) P4,570 Retained earnings Total Liab and SHE P4.570 REQUIRED: (Round answers to two decimal places) 1. Current Ratio 11. Earnings Per Share 12. P/E ratio 13. Dividends Yield 2. Acid-test Ratio 3. Accounts Receivable Turnover 4. Inventory Turnover 5. Gross Profit Margin 6. Operating Profit Margin 7. Return on Sales 8. BOA-Operational 9. BOA-Total Management performance 10. Return on Equity 14. Payout Ratio 15. Debt Ratio 16. Debt-Equity ratio 17. Times interest earned 18. Defensive Interval ratio 19. Cash flow to total debt 20. Cash flow margin
Financial Accounting: The Impact on Decision Makers
10th Edition
ISBN:9781305654174
Author:Gary A. Porter, Curtis L. Norton
Publisher:Gary A. Porter, Curtis L. Norton
Chapter13: Financial Statement Analysis
Section: Chapter Questions
Problem 13.5AMCP
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Debt - Equity Ratio
Time interest earned
Defensive interval Ratio
Cash flow to total debt
Cash flow margin
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