The Balance Sheet and Income Statement of Zamil Industrial Co. are mentioned bel
ID: 2593750 • Letter: T
Question
The Balance Sheet and Income Statement of Zamil Industrial Co. are mentioned below: Calculate the following ratios: a. Current Ratio b. Quick Ratio c. Receivable Turnover & Day’s Receivable d. Inventory Turnover & Day’s Inventory e. Fixed Asset Turnover & Total Asset Turnover f. Debt Ratio & Debt to Equity Ratio g. Profit Margin h. Return on Asset (ROA) i. Return on Equity (ROE) j. Earnings per Share and Book Value per Share Assets2016Liabilities and Owners' Equity2016Current AssetsCurrent LiabilitiesCash100Accounts Payable300Accounts Receivable300Notes Payable300Inventory600Total Current Liabilities600Total Current Assets1,000Long-Term LiabilitiesLong-Term Debt1,100Fixed AssetsTotal Long-Term Liabilities1,100Property, Plant, and Equipment1,400Owners' EquityLess Accumulated Depreciation100Common Stock ($1 Par)300Net Fixed Assests1,300Capital Surplus200Retained Earnings100Total Owners' Equity600Total Assets2,300Total Liab. and Owners' Equity2,300Balance Sheet
($ in Millions)2016Sales700Cost of Goods Sold400Administrative Expenses200Depreciation537Earnings Before Interest and Taxes-437Interest Expense40Taxable Income-477Taxes-104Net Income-373Dividends0Addition to Retained Earnings-373Other InformationNumber of Shares Outstanding (Milions)300Price per Share2
(3 marks) The Balance Sheet and Income Statement of Zamil Industrial Co. are mentioned below: Balance Sheet $Sin Milionsincome Statement (S in Millions) Assets 0 m5 Labilties and Owners' Equity 10 yarl 62 Total Cament Uabihlie 2016 200 400 200 537 Carrent Assets Caer Uabiltles Sales Cost of Gus Sold Administrative Experses 6 Depreciation Total Current Assets mng-Term Liablities Earnings Before Interest and Taxes 40 11 Irterest Experse 11 Taxable Income Fieed Ast Paeti. Prt, rd uprrer: Total long-Tem LiabTities 0wners Equity 104 -373 1,100 Tanes Net Inome 2 Cividends 1 Adcition to RetainedEarrings 6Other Information Net Fieed Assests 373 Total Owners Equit 13m Tota liab.ard Owners Equity 23Number of Shares Outstandirg IMilon300 2.15 Total Assets Prioe per Share Calculate the following ratios: a. Current Ratio b. Quick Ratio c. Receivable Turnover & Day's Receivable d. Inventory Turnover & Day's Inventory e. Fixed Asset Turnover & Total Asset Tumover f. Debt Ratio & Debt to Equity Ratio Profit Margin h. Return on Asset (ROA) i. Return on Equity (ROE) j. Earnings per Share and Book Value per ShareExplanation / Answer
a. Current ratio = Current assets / Current liabilities = 1000 / 600 = 1.67 b. Quick ratio = Quick assets / Current liabilities = (100 + 300)/600 = 400/600 =0.67 c. Receivable turnover = Sales / Accounts receivable = 700/300 = 2.33 times Day's receivables = 365 days / Receivables turnover ratio = 365/2.33 = 156.65 days d. Inventory turnover = Sales / Inventory = 700/600 = 1.17 times Day's inventory = 365 days / Inventory turnover ratio = 365/1.17 = 311.97 days e. Fixed asset turnover = Sales / Fixed assets = 700/1300 = 0.54 times Total asset turnover = Sales / Total assets = 700/2300 = 0.30 times f. Debt ratio = Total debt / Total assets = (600 + 1100)/2300 = 73.91% Debt to equity ratio = Total debt / Equity = (600 + 1100)/600 = 1700/600 = 283.33% g. Profit margin = Net income / Sales = -373/700 = -53.29% h. Return on assets = Net income / Total assets = -373/2300 = -16.22% i. Return on equity = Net income / Stockholders' equity = -373/600 = -62.17% j. Earnings per share = Net income / Number of outstanding common stock = -373/300 = -$1.24 Book value per share = Stockholders' equity / Number of outstanding common stock = 600/300 = $2
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