Using the financial statements for the Snider Corporation,calculate the 13 basic ratios found in the chapter.
SNIDER CORPORATION
Balance Sheet
December 31, 2013
Assets
Current assets:
Cash $ 51,800
Marketable securities 24,200
Accounts receivable (net)174,000
Inventory 227,000
Total currentassets $ 477,000
Investments 63,500
Plant and equipment. $ 646,000
Less: Accumulated depreciation246,000
Net plant and equipment 400,000
Total assets $ 940,500
Liabilities and Stockholders' Equity
Current liabilities:
Accounts payable $ 91,100
Notes payable 73,400
Accrued taxes 18,400
Total currentliabilities $ 182,900
Long-term liabilities:
Bonds payable 156,700
Total liabilities $ 339,600
Stockholders' equity
Preferred stock, $50 par value $100,000
Common stock, $1 par value80,000
Capital paid in excess of par190,000
Retained earnings 230,900
Total stockholders'equity $ 600,900
Total liabilities and stockholders' equity $940,500
SNIDER CORPORATION
Income Statement
For the Year Ending December 31, 2013
Sales (on credit) $ 2,034,000
Cost of goods sold 1,308,000
Gross profit $ 726,000
Selling and administrative expenses 488,000 *
Operating profit (EBIT) $ 238,000
Interest expense 34,900
Earnings before taxes (EBT) $ 203,100
Taxes 89,300
Earnings after taxes (EAT) $ 113,800
*Includes $36,600 in lease payments.
Using the above financial statements for the Snider Corporation,calculate the following ratios.
a.
Profitability ratios. (Do not round intermediate calculations.Input your answers as a percent rounded to 2 decimal places.)
Profitability Ratios
Profit margin %
Return on assets (investment) %
Return on equity %
b.
Assets utilization ratios. (Do not round intermediatecalculations. Round your answers to 2 decimal places.)
Assets Utilization Ratios
Receivable turnover times
Average collection period days
Inventory turnover times
Fixed asset turnover times
Total asset turnover times
c.
Liquidity ratios. (Do not round intermediate calculations. Roundyour answers to 2 decimal places.)
Liquidity Ratios
Current ratio times
Quick ratio times
d.
Debt utilization ratios. (Do not round intermediatecalculations. Input your debt to total assets answer as a percentrounded to 2 decimal places. Round your other answers to 2 decimalplaces.)
Debt Utilization Ratios
Debt to total assets %
Times interest earned times
Fixed charge coverage times
