The following are the financial statements for Nederland Consumer Products Compa
ID: 2364954 • Letter: T
Question
The following are the financial statements for Nederland Consumer Products Company for the fiscal year ended September 30, 2011.
The following are the financial statements for Nederland Consumer Products Company for the fiscal year ended September 30, 2011.
Income Statement for the Fiscal Year
Ended September 30, 2011
Net sales $ 58,980 Cost of goods sold 19,994 Gross margin $ 38,986 Marketing, research, administrative exp. 11,834 Depreciation 615 Operating income(loss) $ 26,537 Interest expense 589 Earnings(loss) before income taxes $ 25,948 Income taxes 7,961 Net earnings(loss) $ 17,987
Nederland Consumer Products Company
Balance Sheet as of September 30, 2011 Assets: Liabilities and Stockholder's Equity: Cash and marketable securities $ 6,022 Accounts payable $ 3,788 Investment securities 503 Accrued and other liabilities 8,286 Accounts receivable 4,098 Taxes payable 2,554 Total inventories 4,539 Debt due within one year 7,550 Deferred income taxes 1,143 Prepaid expenses & other receivables 1,590 Total current assets $ 17,895 Total current liabilities $ 22,178 Property, plant, and equip., at cost 28,215 Long-term debt 12,135 Less: Accumulated depreciation 10,307 Deferred income taxes 2,378 Net plant and equipment $ 17,908 Other non-current liabilities 3,290 Net goodwill & other intangible assets 26,468 Total liabilities $ 39,981 Other non-current assets 2,090 Convertible Class A preferred stock 1,208 Common stock 1,719 Retained earnings 21,453 Total stockholders
Explanation / Answer
Current Ratio = Current Assets/Current Liabilities:
17,895/22,178 = 0.81
Quick Ratio = (Current Assets - Inventories)/Current Liabilities:
(17,895-4,539)/22,178 = 0.60
Gross Margin = Gross Profit/Sales:
38,986/58,980 = 0.66
Net Profit Margin = Net Income/Sales:
17,987/58,980 = 0.30
Debt Ratio = Total Liabilities/Total Assets:
39,981/64,361 = 0.62
Long-Term Debt-to-Equity Ratio = Long Term Debt/Total Stockholders' Equity:
12,135/24,380 = 0.50
Interest Coverage Ratio = EBIT (or Operating Income)/Interest Expense:
26,537/589 = 45.05
ROA = Net Income/Total Assets:
17,987/64,361 = 0.28
ROE = Net Income/Total Stockholders' Equity
17,987/24,380 = 0.74
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