Zoom Industries. The following balance sheets and income statements are for Zoom Industries., a cloud services provider. For purposes of these questions assume that the company has an effective tax rate of 25%. ASSETS ($ in thousands) Fiscal year end 2020 2019 2018 Cash $ 875,650 $ 571,250 $ 154,230 Marketable securities 6,560 0 0 Receivables 771,580 775,250 902,000 Inventories 1,320,150 1,254,600 1,418,500 Other current assets 249,000 231,200 229,900 Total current assets 3,222,940 2,832,300 2,704,630 Property, plant & equipment 1,118,750 1,100,300 1,122,400 Intangibles 263,050 241,000 215,600 Deposits & other assets 184,500 168,250 168,900 Total assets $4,789,240 $4,341,850 $4,211,530 LIABILITIES ($ in thousands) Fiscal year end 2020 2019 2018 Accounts payable $1,178,540 $1,061,100 $1,138,250 Current long term debt 18,100 316,500 150,900 Accrued expenses 664,100 615,900 585,400 Income taxes payable 138,900 108,400 38,200 Other current liabilities 0 0 0 Total current liabilities 1,999,640 2,101,900 1,912,750 Long term debt 478,250 378,400 599,630 Other long term liabilities 13,350 0 0 Total liabilities 2,491,240 2,480,300 2,512,380 Preferred stock 850,000 850,000 550,000 common stock net 4,000 3,950 3,800 Additional Paid-in Capital 869,000 758,000 689,500 Retained earnings 1,430,500 1,055,000 1,245,050 Treasury stock (855,500) (805,400) (789,200) Shareholders' equity 2,298,000 1,861,550 1,699,150 Total Liab. & Equity $4,789,240 $4,341,850 $4,211,530 INCOME STATEMENTS ($ in thousands) Fiscal year end 2020 2019 Net sales $11,455,500 $11,082,100 Cost of Goods Sold (8,026,450) (7,940,065) Gross profit 3,429,050 3,142,035 Selling, general & admin. Exp. (1,836,400) (1,789,200) Income before deprec. & amort. 1,592,650 1,352,835 Depreciation & amortization (785,250) (757,250) Interest expense (46,195) (43,340) Income before tax 761,205 552,245 Provision for income taxes (157,725) (112,290) Minority interest -- -- Net income $ 603,480 $ 439,955 Outstanding shares (in thousands) 308,515 303,095 Preferred Dividends (in thousands) $85,000 $85,000 1. Refer to the information for Zoom Industries. What is Zoom Industries’ capital structure leverage ratio for 2020? 2. Refer to the information for Zoom Industries. What is Zoom Industries’ return on common shareholders’ equity for 2020? 3. Refer to the information for Zoom Industries. What is the accounts receivable turnover ratio for Zoom Industries for 2020?
Zoom Industries.
The following
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ASSETS ($ in thousands) |
|
|
|
|
|
|
|
|
|
Fiscal year end |
2020 |
2019 |
2018 |
|
Cash |
$ 875,650 |
$ 571,250 |
$ 154,230 |
|
Marketable securities |
6,560 |
0 |
0 |
|
Receivables |
771,580 |
775,250 |
902,000 |
|
Inventories |
1,320,150 |
1,254,600 |
1,418,500 |
|
Other current assets |
249,000 |
231,200 |
229,900 |
|
Total current assets |
3,222,940 |
2,832,300 |
2,704,630 |
|
|
|
|
|
|
Property, plant & equipment |
1,118,750 |
1,100,300 |
1,122,400 |
|
|
|
|
|
|
Intangibles |
263,050 |
241,000 |
215,600 |
|
Deposits & other assets |
184,500 |
168,250 |
168,900 |
|
Total assets |
$4,789,240 |
$4,341,850 |
$4,211,530 |
|
LIABILITIES ($ in thousands) |
|
|
|
|
|
|
|
|
|
Fiscal year end |
2020 |
2019 |
2018 |
|
Accounts payable |
$1,178,540 |
$1,061,100 |
$1,138,250 |
|
Current long term debt |
18,100 |
316,500 |
150,900 |
|
Accrued expenses |
664,100 |
615,900 |
585,400 |
|
Income taxes payable |
138,900 |
108,400 |
38,200 |
|
Other current liabilities |
0 |
0 |
0 |
|
Total current liabilities |
1,999,640 |
2,101,900 |
1,912,750 |
|
|
|
|
|
|
Long term debt |
478,250 |
378,400 |
599,630 |
|
Other long term liabilities |
13,350 |
0 |
0 |
|
Total liabilities |
2,491,240 |
2,480,300 |
2,512,380 |
|
|
|
|
|
|
|
850,000 |
850,000 |
550,000 |
|
common stock net |
4,000 |
3,950 |
3,800 |
|
Additional Paid-in Capital |
869,000 |
758,000 |
689,500 |
|
|
1,430,500 |
1,055,000 |
1,245,050 |
|
|
(855,500) |
(805,400) |
(789,200) |
|
Shareholders' equity |
2,298,000 |
1,861,550 |
1,699,150 |
|
|
|
|
|
|
Total Liab. & Equity |
$4,789,240 |
$4,341,850 |
$4,211,530 |
|
INCOME STATEMENTS ($ in thousands) |
|
|
|
|
|
|
|
Fiscal year end |
2020 |
2019 |
|
Net sales |
$11,455,500 |
$11,082,100 |
|
Cost of Goods Sold |
(8,026,450) |
(7,940,065) |
|
Gross profit |
3,429,050 |
3,142,035 |
|
|
|
|
|
Selling, general & admin. Exp. |
(1,836,400) |
(1,789,200) |
|
Income before deprec. & amort. |
1,592,650 |
1,352,835 |
|
|
|
|
|
|
(785,250) |
(757,250) |
|
Interest expense |
(46,195) |
(43,340) |
|
|
|
|
|
Income before tax |
761,205 |
552,245 |
|
Provision for income taxes |
(157,725) |
(112,290) |
|
Minority interest |
-- |
-- |
|
|
|
|
|
Net income |
$ 603,480 |
$ 439,955 |
|
|
|
|
|
Outstanding shares (in thousands) |
308,515 |
303,095 |
|
Preferred Dividends (in thousands) |
$85,000 |
$85,000 |
|
|
|
1. Refer to the information for Zoom Industries. What is Zoom Industries’ capital structure leverage ratio for 2020?
2. Refer to the information for Zoom Industries. What is Zoom Industries’ return on common shareholders’ equity for 2020?
3. Refer to the information for Zoom Industries. What is the accounts receivable turnover ratio for Zoom Industries for 2020?
4. Refer to the information for Zoom Industries. What is the inventory turnover for Zoom Industries for 2020?
5. Refer to the information for Zoom Industries. What is the profit margin for ROA for Zoom Industries for
2019?
6.Refer to the information for Zoom Industries. What is the rate of
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