can you help.me with question2 with the 2 charts I gaveyou thank you 5 6 able 2.

Question

can you help.me with question2 with the 2 charts I gaveyou thank you

5 6 able 2.1 Inilate Textiles: December 31 Balance Sheets (S millions, except er-share data) 2016 2015 Percentage of Amount Percentage of Total Assets Amount Total Assets 1.8% 53% Cash and equivalents 160.0 2000 5400.0 3500 $750.0 270.0 $465.0 Inventory 55.0% 53.3% Total current assets Net plant and equipment Total assets 845.0 100.0% 100096 Liabilities and Equity 20% Accruals Notes payable Long-term bonds Common stock (25 million shares) 15.4% $1300 300.0 $4300 1300 14.0% 255.0 5360.0 130.0 2600 390.0 50.9% 48.06 Total common equity 49.1% 100096 Total liabilities and equity 845.0 100.0% Book value per share (Common equity)/Shares $1660 523.00 Market value per share (stock price) $25.00 Additional Information: Net working capital Current assets -Current liabilities $295.0 390.0 Net worth Total assets Total liabilities 415.0 Breakdown of net plant and equipment account: Gross plant and equipment Less Accumulated depreciation $680.0 (300.0) $3800 $6000 250.0) $350.0 Net plant and equipment f the firm's assets were financed using debt, most of minus total liabilities. Table 2.1 shows that Uni hich (70 percent of total liabilities) was in the form ofworth was $415 million at the end of 2016, whic ong-term bonds on the amounts shown on the balance sheet Equity represents stockholders' ownership, which nlike debt, does not have to be paid off. Total equi were to liquidate its as- y is the amount that would be paid to stockholders if sets and pay off all of its he firm's assets could be sold at the values reported on outstanding debt. How Stocknod he balance sheet and its debt could be paid off i te ever, because the firnm mounts reported on the balance sheet. Thus, the firm'sprobably would not be stock, paid-in capital, tockholders' equity, or net worth, equals total assets able to sell all of the earnings that stockholders would receive $415 million i cause the firm Worth) The funds CHAPTER 2: Analysis of Financial St

Explanation / Answer

2. a) Current ratio = current assets / current liabilities

= 465/130

= 3.57

b) Quick ratio = (current assets-inventory) / current liabilities

= (465-270) / 130

= 1.5

c) Fixed asset turnover = net sales / average fixed assets

= 1500 / ((380+350)/2)

= 4.1

d) Total asset turnover = net sales / average total assets

= 1500 / ((845+750)/2)

= 1.88

e) Debt ratio = total liab. /total assets

= 430/845

= 0.5

f) times interest earned = EBIT / interest expense

= 130/40

= 3.25

g) Net profit margin = net income / net sales

= 54/1500

= 3.6%

h)Return on equity = net income / total equity

= 54 / 415

= 13.01%

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