Question

Instructions a) Calculate the value or the ratio of items in the boxes b) Show your...

Instructions a) Calculate the value or the ratio of items in the boxes b) Show your work by specifiying the formula you used for each of these calculations. c) For $ values, no need to leave any decimals, e.g Gross Profit = $34,000. d) Leave ratios and percentages in 2 decimal place, e.g. TIE = 2.81; ROA = 4.83%; etc.

Suggestion: calculate the yellow subtotals before going on to answer individual questions (e.g. the current assets, etc.). These are intermediate numbers used in various ratios.

2016

Big Apple Enterprises

Yr 2016

ASSETS

Cash

4,500

Accounts Receivable

21,000

Inventory

7,500

Current Assets

Other Non-current Assets

10,500

Net Fixed Assets

18,500

TOTAL ASSETS

62,000

LIABILITIES

Current Liabilities

20,000

Debt

22,000

Equity

20,000

TOTAL LIABILITIES & EQUITY

INCOME STATEMENT

Revenue

125,000

Cost of Goods Sold (COGS)

85,000

Gross Profit

SG&A

20,000

Operating Profit (EBIT)

Interest Expense

2,800

Earnings Before Taxes (EBT)

Taxes

Net Income After Tax (NIAT)

Other Information

Yr 2016

Tax Rate

30%

Shares Outstanding

2,000

Dividends paid

3,000

Share Price

$8.00

2016 Spring2

For each of the calculations or ratios below, show work by specifying the formula you used to get its numeric answer:

What was the company's Gross Profit in 2017?

What was the company's Gross Margin ratio in 2017?

What was the company's Operating Profit (EBIT) in 2017?

What was the company's Pretax Income (EBT) in 2017?

How much Income Tax did they pay in 2017?

What was the company's Net Income After Tax (NIAT) in 2017?

What was the company's Net Operating Profit After Tax (NOPAT) in 2017?

What was the company's Times Interest Earned (TIE) in 2017?

What was the company's Profit Margin ratio in 2017?

What was the company's Return on Assets (ROA) in 2017?

What was the company's Return on Equity (ROE) in 2017?

What is the company's Current ratio in 2017?

What was the company's Quick Ratio in 2017?

What was the company's Day's Sales Outstanding (DSO) in 2017?       Assume a day-count of 365 days per year.

What was the rate of the company's asset growth between 2016 and 2017?

What was the rate of the company's sales' growth between 2016 and 2017?

What was the company's Debt-to-Equity ratio in 2017?

What was the company's Earnings Per Share (EPS) in 2017?

What was the company's Price-Earnings (P/E) ratio in 2017?

What was the company's Dividend Payout ratio (DPR) in 2017?

What were the Dividends Per Share paid in 2017?

What was the Dividend Yield in 2017?

In one paragraph, please analyze the Statement of Income for 2017 as compared to 2016:

The denominator should only include 2017 data.

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Homework Answers

Answer #1

Gross Profit = $40,000

Gross Margin Ratio = 40000/125000*100 = 32.00%

EBIT = $20,000

EBT = $17,200

Tax = $5,160

NIAT = $12,040

NOPAT = EBIT *(1-Tax Rate) = 20000*0.7 = $14,000

TIE = EBIT/Interest Payable = 20000/2800 = 7.14

Profit Margin Ratio = 12040/125000 = 9.63%

ROA = NIAT / Assets = 12040/62000 = 19.42%

ROE = NIAT / Equity = 12040/20000 = 60.20%

Current Ratio = Current Asset / Current Liability = 33000 / 20000 = 1.65

Quick Ratio = (Cash + Accounts Receivables) / Current Liability = (4500+21000)/20000 = 1.27

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