Using the condensed summary financial statements for Eli Lilly
& Company (included on the following page),...
Using the condensed summary financial statements for Eli Lilly
& Company (included on the following page),
calculate the following ratios for Eli Lilly for
2019:
Current Ratio
Accounts Receivable Turnover
Average Days in Inventory (also known as Average Days to Sell
Inventory)
Gross Profit Percentage
Debt to Assets Ratio
PROBLEM 3, continued
Eli Lilly & Company
Summary Condensed Balance Sheet
$ in Millions
Assets
Dec. 31, 2019
Dec. 31, 2018
Liabilities and Equity
Dec. 31, 2019
Dec. 31, 2018
Cash...
For each of the following financial statement ratios, identify
whether the ratio provides analysis regarding a...
For each of the following financial statement ratios, identify
whether the ratio provides analysis regarding a firms:
Profitability
Liquidity
Solvency
Common stockholder valuation
Earnings Per Share (EPS)
Quick ratio
Gross profit percentage (or margin)
Dividend Yield
Price to Earnings ratio
Accounts receivable turnover
Operating cash flow to current liabilities ratio
Days' sales in inventory
Debt to Equity ratio
Return on sales
Return on assets
Current ratio
The balance sheet and income statement for the A. Thiel Mfg.
Company are as follows:
Balance...
The balance sheet and income statement for the A. Thiel Mfg.
Company are as follows:
Balance Sheet ($000)
Cash
$ 500
Accounts receivable
2,000
Inventories
1,000
Current assets
$3,500
Net fixed assets
4,500
Total assets
$8,000
Accounts payable
$1,100
Accrued expenses
600
Short-term notes payable
300
Current liabilities
$2,000
Long-term debt
2,000
Owners’ equity
4,000
Total liabilities and owners’ equity
$8,000
Income Statement ($000)
Sales (all credit)
$8,000
Cost of goods sold
(3,300)
Gross profit
$4,700
Operating expenses (includes $500...
Income statement and balance sheet data for The Sports Shack are
provided below.
The Sports Shack...
Income statement and balance sheet data for The Sports Shack are
provided below.
The Sports Shack
Income Statements
For the years ended December 31
2019
2018
Sales revenue
$8,200,000
$6,600,000
Cost of goods sold
6,100,000
4,700,000
Gross profit
2,100,000
1,900,000
Expenses:
Operating
expenses
1,450,000
1,400,000
Depreciation
expense
90,000
100,000
Interest
expense
25,000
50,000
Income
tax expense
95,000
80,000
Total
expenses
1,660,000
1,630,000
Net income
$440,000
$270,000
The Sports Shack
Balance Sheets
December 31
Assets
2019
2018
2017
Current assets:
Cash...
The balance sheet and income statement for Rocket Corporation
are as follows: Balance Sheet as of...
The balance sheet and income statement for Rocket Corporation
are as follows: Balance Sheet as of December 31, 2019 ASSETS
LIABILITIES & EQUITY Cash & marketable sec. $3,500 Accounts
payable $38,000 Accounts Receivable 47,000 Taxes payable 9,000
Inventory 13,000 Short-term borrowings 20,500 Total current assets
$63,500 Total current liabilities $67,500 Net P,P & E $452,000
Long-term debt $200,000 Total liabilities $267,500 Common stock at
par $80,000 Additional paid-in capital $45,000 Retained earnings
$123,000 TOTAL ASSETS $515,500 TOTAL LIABILITIES & EQUITY...
LOGIC COMPANY
Comparative Income Statement
For Years Ended December 31, 2019 and 2020
2020
2019
Gross...
LOGIC COMPANY
Comparative Income Statement
For Years Ended December 31, 2019 and 2020
2020
2019
Gross sales
$
19,800
$
15,600
Sales returns and allowances
900
100
Net sales
$
18,900
$
15,500
Cost of merchandise (goods) sold
11,800
8,800
Gross profit
$
7,100
$
6,700
Operating expenses:
Depreciation
$
780
$
640
Selling and administrative
2,800
2,400
Research
630
540
Miscellaneous
440
340
Total operating expenses
$
4,650
$
3,920
Income before interest and taxes
$
2,450
$
2,780...
income statement
Sales
205,000
cost of goods sold
-97,000
salaries expense
-24,000
depreciation expense
-16,000...
income statement
Sales
205,000
cost of goods sold
-97,000
salaries expense
-24,000
depreciation expense
-16,000
interest expense
-2,400
loss on equipment disposal
-2,500
net income
63,100
Statement of Retained Earnings
Beginning Balance - Retained Earnings
6,000
Plus - Net Income
63,100
Less - Dividends
(41,500)
Ending Balance - Retained Earnings
27,600
Balance sheets
2018
2019
change
Assets:
Cash
13,000
64,600
51,600
Accounts Receivable
25,000
19,000
(6,000)
Inventory
19,000
13,000
(6,000)
prepaid expenses
0
0
0
Equipment
60,000
41,000
(19,000)...
Below are the 2019 income statement and balance sheet of Happy
water, Inc. Assuming the company's...
Below are the 2019 income statement and balance sheet of Happy
water, Inc. Assuming the company's fixed assets are operating at
100% capacity and the company expect 20% growth in sales in 2020.
If the tax rate and payout ratio in 2020 are the same as those in
2019, what is the external financing needs in 2020?
Income Statement 2019
Sales
150
Costs
100
EBIT
50
Interest exp.
10
EBT
40
Tax
8
NI
32
Dividends
16
RE
16
Balance...
Below are the 2019 income statement and balance sheet of Happy
water, Inc. Assuming the company's...
Below are the 2019 income statement and balance sheet of Happy
water, Inc. Assuming the company's fixed assets are operating at
100% capacity and the company expect 20% growth in sales in 2020.
If the tax rate and payout ratio in 2020 are the same as those in
2019, what is the external financing needs in 2020?
Income Statement 2019
Sales
150
Costs
100
EBIT
50
Interest exp.
10
EBT
40
Tax
8
NI
32
Dividends
16
RE
16
Balance...