Please answer all parts The following table presents the data for CanDo Inc. in
ID: 2652031 • Letter: P
Question
Please answer all parts
The following table presents the data for CanDo Inc. in as of December 31 2008:
Accounts payable
$104,000
Accounts receivable
$146,000
Cash and cash equivalents
$108,000
CoGS
$224,700
Common Stock
$1,286,000
Depreciation
$37,000
Dividend payout ratio
40%
Interest paid
$43,000
Inventory
$123,000
Long-term debt
$1,254,000
Net Fixed Assets
$2,467,000
Sales
$330,000
Short-term debt
$106,867
Tax rate
35%
Calculate the following financial ratios for CanDo Inc. in the fiscal year of 2009:
Current ratio
Quick ratio
Cash ratio
Net working capital ratio
Interval measure
Total debt ratio
Debt-equity ratio
Equity multiplier
Long-term debt ratio
Times interest earned
Cash coverage ratio
Inventory turnover (using average inventory from 2008 and 2009)
Days’ sales in inventory
Receivables turnover (using average accounts receivable from 2008 and 2009)
Days’ sales in receivables
Payables turnover (using average accounts payable from 2008 and 2009)
Days’ sales in payables
NWC turnover
Fixed assets turnover
Total asset turnover
Profit margin
Return on assets (ROA)
Return on equity (ROE)
Price-earnings (P/E) ratio
Market-to-book ratio
Accounts payable
$104,000
Accounts receivable
$146,000
Cash and cash equivalents
$108,000
CoGS
$224,700
Common Stock
$1,286,000
Depreciation
$37,000
Dividend payout ratio
40%
Interest paid
$43,000
Inventory
$123,000
Long-term debt
$1,254,000
Net Fixed Assets
$2,467,000
Sales
$330,000
Short-term debt
$106,867
Tax rate
35%
Explanation / Answer
Accounts Receivable 146000 Cash and cash equivalent 108000 Quick Assets 254000 Add:Inventory 123000 Current Assets 377000 Accounts Payable 104000 Short term Debt 106887 Curent Liabilities 210887 Current Ratio (Current Asset/Current Liabilities) 1.79 Quick ratio (Quick asset/current liabilities) 1.20 Cash ratio (cash and cash equivalent/current liabilities) 0.51 Working Capital ratio (Current Asset/Current Liabilities) 1.79 Interval measure (Quick assets/Daily operating expenses) 412.59 Total Debt Ratio (Total Debt / Total Assets) 0.48 Current Assets 377000 Net Fixed Assets 2467000 Total Assets 2844000 Long term debt 1254000 Short term Debt 106867 Total Debt 1360867 Sales 330000 CoGS 224700 Gross Profit 105300 Depreciation 37000 EBIT 68300 Interest Paid 43000 Income Before Tax 25300 Tax @35% 8855 EAT 16445 Less Dividend payment 6578 Retained Earnings 9867 Common Stock 1286000 Add:Retained Earnings 9867 Owners Equity 1295867 Debt to Equity Ratio (Total Debt/Owners Equity) 1.05 Equity Multiplier Ratio (Total Assets / Owners Equity) 2.19 Long term debt ratio (long term debt/ Total Assets) 0.44 Time interest earned (EBIT/Interest) 1.59 Cash Coverage ratio (cash and cash equivalent/current liabilities) 0.51 Days Sales Inventory (Inventory/Sales x 365) 136.05 days Receivables turnover (Sales/Accounts Receivable) 2.26 Days Sales in Receivable (Accounts Receivable/Sales x 365 161.48 days Payables Turnover (Sales/ Accounts Payable) 1.40 Days Sales in Payables (Accounts Payable/Sales x 365) 260 days
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