Company H & G Requirement Calculate the ratios, turnovers, DSO, earnings per sha

Question

Company H & G Requirement Calculate the ratios, turnovers, DSO, earnings per share, and margins for 2013 & 2014 as indicated. 2014 2013 2014 2013 Balance Sheet Income Statement Nos. Earnings per share Cash 17,201 16,968 Net sales 2,766,425 1,940,917 39 2014 Receivables, net 70,150 59,287 Cost of sales 1,942,654 1,364,662 40 2013 Inventories 641,280 554,389 Gross Profit 823,771 576,255 Price-earnings ratio Other Current assest 15,003 14,544 Selling & Store Ops 518,742 344,360 41 2014 Total current assets 743,634 645,188 G&A 50,601 33,886 42 2013 Land 427,230 328,048 Total Operating Exp 569,343 378,246 Gross margin % Buildings, net 622,867 488,234 Operating income 254,428 198,009 43 2014 Furniture, fixtures, etc. 290,577 230,179 Interest expense 14,747 3,737 44 2013 Net propertry & equip 1,340,674 1,046,461 EBT 239,681 194,272 Return on assets Total assets 2,084,308 1,691,649 Income taxes 83,888 67,995 45 2014 Net earnings 155,793 126,277 46 2013 Accounts Payable 244,905 199,420 Return on equity Accr. Salaries & expenses 62,725 54,123 47 2014 Other acccrued exp. 29,886 26,943 48 2013 Income taxes payable 6,807 6,158 Nos. Asset Turnover Curr portion of L-T debt 3,258 2,968 29 2014 Current ratio Current liabilities 347,581 289,612 30 2013 49 2014 Long-term debt 254,525 75,628 Receivable Turnover 50 2013 Total liabilities 602,106 365,240 31 2014 Acid test ratio Common stock 440,538 440,538 32 2013 51 2014 Additional Paid-In Capital 16,413 16,413 Day Sales in Receivable 52 2013 Retained Earnings 1,025,251 869,458 33 2014 Debt-to-equity ratio Stockholders' Equity 1,482,202 1,326,409 34 2013 53 2014 Liabilities & Equity 2,084,308 1,691,649 Inventory Turnover 54 2013 35 2014 Time interest earned No. shares 465,000 465,000 36 2013 55 2014 Share price 5.05 4.05 Day sales in Inventory 56 2013 37 2014 38 2013 Company H & G Requirement Calculate the ratios, turnovers, DSO, earnings per share, and margins for 2013 & 2014 as indicated. 2014 2013 2014 2013 Balance Sheet Income Statement Nos. Earnings per share Cash 17,201 16,968 Net sales 2,766,425 1,940,917 39 2014 Receivables, net 70,150 59,287 Cost of sales 1,942,654 1,364,662 40 2013 Inventories 641,280 554,389 Gross Profit 823,771 576,255 Price-earnings ratio Other Current assest 15,003 14,544 Selling & Store Ops 518,742 344,360 41 2014 Total current assets 743,634 645,188 G&A 50,601 33,886 42 2013 Land 427,230 328,048 Total Operating Exp 569,343 378,246 Gross margin % Buildings, net 622,867 488,234 Operating income 254,428 198,009 43 2014 Furniture, fixtures, etc. 290,577 230,179 Interest expense 14,747 3,737 44 2013 Net propertry & equip 1,340,674 1,046,461 EBT 239,681 194,272 Return on assets Total assets 2,084,308 1,691,649 Income taxes 83,888 67,995 45 2014 Net earnings 155,793 126,277 46 2013 Accounts Payable 244,905 199,420 Return on equity Accr. Salaries & expenses 62,725 54,123 47 2014 Other acccrued exp. 29,886 26,943 48 2013 Income taxes payable 6,807 6,158 Nos. Asset Turnover Curr portion of L-T debt 3,258 2,968 29 2014 Current ratio Current liabilities 347,581 289,612 30 2013 49 2014 Long-term debt 254,525 75,628 Receivable Turnover 50 2013 Total liabilities 602,106 365,240 31 2014 Acid test ratio Common stock 440,538 440,538 32 2013 51 2014 Additional Paid-In Capital 16,413 16,413 Day Sales in Receivable 52 2013 Retained Earnings 1,025,251 869,458 33 2014 Debt-to-equity ratio Stockholders' Equity 1,482,202 1,326,409 34 2013 53 2014 Liabilities & Equity 2,084,308 1,691,649 Inventory Turnover 54 2013 35 2014 Time interest earned No. shares 465,000 465,000 36 2013 55 2014 Share price 5.05 4.05 Day sales in Inventory 56 2013 37 2014 38 2013

Explanation / Answer

Earning per share => net earnngs / no. of shares outstanding

2013 => 126277 / 465000

2013 => 0.27 per share

2014 => 155793 / 465000

2014 => 0.34 per share

PRICE EARNING RATIO => price per share / earning per share

2013 => 4.05 / 0.27

2013 => 15 times

2014 => 5.05/0.34

2014 => 14.9 times

GROSS MARGIN % => Gross profit / net sales

2013 => (576255 / 1940917)*100

2013=> 29.7%

2014 => (823771 / 2766425) *100

2014=> 29.8%

RETURN ON ASSETS => net income /total assets

net income => net earnings+ interest

2013 =>[ (126277+3737) / 1691649 ]*100

2013 => 7.68 %

2014 => [ ( 155793 + 14747 ) /2084308 ] *100

2014 => 8.18%

RETURN ON EQUITY => Net Earnings / Shareholders equity

2013 => (126277 / 1326409)*100

2013 => 9.5%

2014 => (155793 / 1482202 ) *100

2014 => 10.5 %

CURRENT RATIO => Current assets /Current Liabilities

2013 => 645188 / 289612

2013 => 2.23 times

2014 => 743634 / 347581

2014 => 2.14 times

ACID TEST RATIO => (Current assets - Inventories) /Current Liabilities

2013 => (645188 - 554389 ) / 289612

2013 => 0.31 times

2014 => ( 743634 - 641280 ) / 347581

2014 => 0.29 times

DEBT TO EQUITY RATIO => Total Liabilities / Total Shareholders Equity

2013 => 365240 / 1326409

2013 => 0.28 times

2014 => 602106 / 1482202

2014 => 0.41 times

TIME INTEREST EARNED RATIO => Eanings before interest and tax expense / interest expense

2013 => 198009 / 3737

2013 => 52.99 times

2014 => 254428 / 14747

2014 => 17.25 times

ASSET TURNOVER RATIO => Net sales / Average assets

2013 => 1940917 / 1691649

2013 => 1.15 times

2014 =>[ 2766425 / (1691649 + 2084308)/2 ]

2014 => 1.47 times

RECEIVABLE TURNOVER RATIO => Net Credit sales / Average Accounts receivable

NOTE => Considering All sales as net credit sales

2013 => 1940917 / 59287

2013 => 32.74 times

2014 =>[ 2766425 / (59287 + 70150)/2 ]

2014 => 42.75 times

DAY SALES IN RECEIVABLE RATIO => 365 / Receivable turnover ratio

2013 => 365 / 32.74

2013 => 11 days

2014 => 365 / 42.75

2014=> 9 days

INVENTORY TURNOVER RATIO => cost of goods sold / average inventory

2013 => 1364662 / 554389

2013 => 2.46 times

2014 => [1942654 / ( 554389 + 641280 ) /2 ]

2014 => 3.25 times

DAY SALES IN INVENTORY RTAIO => 365 / Invetory turnover ratio

2013 => 365 / 2.46

2013 => 148 days

2014 => 365 / 3.25

2014 => 112 days

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