1.) Net Pro fit Ratio X 100 Revenues 2.) Gross Profit Percentage X 100 Net Sales

Question

1.) Net Pro fit Ratio X 100 Revenues 2.) Gross Profit Percentage X 100 Net Sales Revenue 3.) Fixed Asset Tumover Average Net Fixed Assets 4.)Retum on Equity (ROE X 100 Average Common Stockholder's Equity 5.) Eamings per Share (EPS) Avergae Number of Common Shares Outstanding 6.) Price/Eamings Ratio EPS 7.)Receivables Tumover Average Net Receivables Days to Collect 365 Receivables Tumover Ratio 8.) nventory Tumover Average Invento Days to Sell 365 Inentory Tumover Ratio 9.)Current Ratio CurrentLiabilities 10.) Debt-to-Assets Total Assets 11.) Times Interest Eamed Interest Expense

Explanation / Answer

1. Net Profit Ratio

Net Income/Revenue*100 = ($ 48351/$ 229234)*100 = 21.09%

2. Gross Profit Percentage

Net Sales Revenue-Cost of Goods Sold/Net Sales Revenue*100 = ($ 229234-$ 141048/$ 229234) = 38.47%

3. Fixed Asset Turnover

Net Revenue/Average Net Fixed Assets = $ 229234/$ 30396.5 = 7.54

Working:

Average Net Fixed Asset=(33783+27010)/2=$ 30396.5

4. Return on Equity

Net Income-Preferred Dividend/Average Common Stockholder's Equity = $ 48351-0/$ 130906 = 36.94%

Working:

Average Common Stockholder's Equity={(35867+98330)+(31251+96364)}/2=(134197+127615)/2 = $ 130906

5. Earning Per Share (Already given in the Consolidated statements of operation=9.27)

Net Income-Preferred Dividend/Average Number of Common Shares Outstanding = $ 48351000000/5344031000 = $ 9.05

Working:

Average Number of Common Shares Outstanding=(5217242+5470820)/2=5344031

6. Price/Earning Ratio

Stock Price/EPS = $ 7/$ 9.05 = 0.77

Working:

Stock Price=Paid up value of shares/Number of Shares outstanding=$ 35867000000/5126201000 = $ 7

7. Receivables Turnover

Net Sales Revenue/Average Net Receivables = $ 229234/$ 16814 = 13.63

Working:

Average Net Receivables = (17874+15754)/2=$ 16814

Days to Collect = 365/Receivables Turnover Ratio = 365/13.63 = 26.78

8. Inventory Turnover

Cost of Goods Sold/Average Inventory = $ 141048/$ 3493.5 = 40.37

Working:

Average Inventory=(4855+2132)/2=$ 3493.5

9. Current Ratio

Current Assets/Current Liabilities = $ 128645/$ 100814 = 1.28

10. Debt-to-Assets

Total Liabilities/Total Assets = $ 241273/$ 375319 = 0.64

11. Times Interest Earned

(Net Income+Interest Expense+Income Tax Expenses)/Interest Expense = ($ 48351+$ 2092+$ 15738)/$ 2092 = $ 66181/$ 2092 = 31.64

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