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Use the following financial statements of Heifer Sports Inc. in Table 14.14 to find Heifer’s: a) Inventory turnover ratio in 2012. b) Debt/equity ratio in 2012. c) Cash flow from operating activities in 2012. d) Average collection period. e) Fixed-asset turnover ratio. f) Return on equity.

Use the following financial statements of Heifer Sports Inc. in Table 14.14 to find Heifer’s: a) Inventory turnover ratio in 2012. b) Debt/equity ratio in 2012. c) Cash flow from operating activities in 2012. d) Average collection period. e) Fixed-asset turnover ratio. f) Return on equity.

Practical Management Science
Practical Management Science
6th Edition
ISBN:9781337406659
Author:WINSTON, Wayne L.
Publisher:WINSTON, Wayne L.
Chapter2: Introduction To Spreadsheet Modeling
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Use the following financial statements of Heifer Sports Inc. in Table 14.14 to find Heifer’s:
a) Inventory turnover ratio in 2012.
b) Debt/equity ratio in 2012.
c) Cash flow from operating activities in 2012.
d) Average collection period.
e) Fixed-asset turnover ratio.
f) Return on equity.

TABLE 14.14 Heiter Sports financial statements Income Statement 2012 Sales $5,500,000 Cost of goods sold Depreciation Selling & administrative expenses 2,850,000 280,000 1,500,000 EBIT 870,000 Interest expense Taxable income 130,000 740,000 Тахes 330,000 Net income $ 410,000 Balance Sheet, year-end 2012 2011 Assets Cash $ 50,000 $ 40,000 Accounts receivable 660,000 690,000 Inventory 490,000 480,000 Total current assets $1,200,000 $1,210,000 Fixed assets 3,100,000 $4,300,000 2,800,000 $4,010,000 Total assets Liabilities and shareholders' equity Accounts payable $ 450,000 550,000 $ 340,000 480,000 $ 820,000 2,520,000 $3,340,000 Short-term debt Total current liabilities $1,000,000 Long-term bonds 2,200,000 $3,200,000 Total liabilities $ 310,000 650,000 $ 960,000 $ 310,000 500,000 Common stock Retained earnings Total shareholders' equity 810,000 Total liabilities and shareholders' equity $4,300,000 $4,010,000
Transcribed Image Text:TABLE 14.14 Heiter Sports financial statements Income Statement 2012 Sales $5,500,000 Cost of goods sold Depreciation Selling & administrative expenses 2,850,000 280,000 1,500,000 EBIT 870,000 Interest expense Taxable income 130,000 740,000 Тахes 330,000 Net income $ 410,000 Balance Sheet, year-end 2012 2011 Assets Cash $ 50,000 $ 40,000 Accounts receivable 660,000 690,000 Inventory 490,000 480,000 Total current assets $1,200,000 $1,210,000 Fixed assets 3,100,000 $4,300,000 2,800,000 $4,010,000 Total assets Liabilities and shareholders' equity Accounts payable $ 450,000 550,000 $ 340,000 480,000 $ 820,000 2,520,000 $3,340,000 Short-term debt Total current liabilities $1,000,000 Long-term bonds 2,200,000 $3,200,000 Total liabilities $ 310,000 650,000 $ 960,000 $ 310,000 500,000 Common stock Retained earnings Total shareholders' equity 810,000 Total liabilities and shareholders' equity $4,300,000 $4,010,000
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