what is the operating efficiency of the firm using the below data As Reported An
ID: 2637263 • Letter: W
Question
what is the operating efficiency of the firm using the below data
As Reported Annual Balance Sheet Report Date 12/31/2013 01/01/2013 Currency USD USD Audit Status Not Qualified Not Qualified Consolidated Yes Yes Cash & cash equivalents 32386000 31486000 Restricted cash - 205000 Receivables, gross 14401000 11430000 Less: allowance for doubtful accounts 291000 103000 Receivables, net 14110000 11327000 Inventories 2670000 3143000 Prepaid & refundable income taxes 483000 655000 Prepaid rent 307000 3080000 Prepaid expenses & other current assets 6727000 1681000 Total current assets $56,683,000.00 51577000 Leasehold improvements 49532000 50358000 Furniture, fixtures & equipment 57529000 57457000 Construction in progress (primarily stores under construction) 164000 79000 Property, fixtures & equipment, gross 107225000 107895000 Less accumulated depreciation & amortization 69740000 69452000 Property, fixtures & equipment, net 37485000 38442000 Goodwill 1233000 1336000 Trademarks & other intangible assets, net 1317000 1412000 Notes receivable 300000 - Deposits & other long-term assets 898000 846000 Total other long-term assets 1198000 846000 Total assets 97916000 93613000 Accounts payable 5086000 8206000 Accrued compensation & benefits 5538000 7566000 Workers' compensation & health insurance reserves 1046000 1087000 Accrued jambacard liability 37121000 33634000 Other current liabilities 13082000 9728000 Total current liabilities $61,873,000.00 60221000 Deferred rent 4033000 5610000 Deferred revenue 2598000 2292000 Construction allowance 1359000 2382000 Contingent consideration 553000 894000 Other liabilities 658000 702000 Deferred rent & other long-term liabilities 9201000 11880000 Total liabilities 71074000 72101000 Series B redeemable preferred stock - 7916000 Common stock 17000 78000 Additional paid-in capital 391234000 380007000 Retained earnings (accumulated deficit) -364409000 -3.66E+08 Total stockholders' equity 26842000 13596000Explanation / Answer
Answer:
Calculations showing Operating efficiency:
1. Total Asset Turnover Ratio : Net Sales / Total Assets
Hence Total Asset Turnover = 52211000 / 97916000
Therefore Total Asset Turnover = 0.533
2.Fixed Asset Turnover ratio = Net Sales / Fixed Assets
Hence, Fixed asset turnover ratio = 52211000/ 41233000 ( Total Assets - Total Current Assets)
Therefore, Fixed asset turnover ratio = 1.266
3.Equity Turnover ratio = Net Sales / Total Equity
Hence Equity Turnover Ratio = 52211000/ 26842000
Therefore, Equity Turnover ratio = 1.945
Here Net sales are considered as value of cost of sales.
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