AFM101 Study Guide - Midterm Guide: Asset, Shares Outstanding
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Hillside,Inc. | ||||||||
BALANCE SHEET | INCOME STATEMENT | |||||||
($ in millions) | ($ in millions) | |||||||
ASSETS | LIABILITIES | Revenue | 28,681.10 | |||||
Cash & Marketable Securities | 449.90 | Accounts Payable | 1,611.20 | Cost Of Goods Sold | 20,768.80 | |||
Accounts Receivable | 954.80 | Salaries Payable | 225.20 | Gross Profit | 7,912.30 | |||
Inventories | 3,645.20 | Other Current Liabilities | 1,118.80 | |||||
Other Current Assets | 116.60 | Total Current Liabilities | 2,955.20 | Operating Expenses: | ||||
Total Current Assets | 5,166.50 | Selling, General & Admin. | 5,980.80 | |||||
Other Liabilities | 693.40 | Depreciation | 307.30 | |||||
Machinery & Equipment | 1,688.90 | Operating income | 1,624.20 | |||||
Land | 1,129.70 | Total Liabilities | 3,648.60 | |||||
Buildings | 2,348.40 | Interest | - | |||||
Depreciation | (575.60) | SHAREHOLDER'S EQUITY | Other Expense (Income) | (13.10) | ||||
Property, Plant & Equip. - Net | 4,591.40 | Common Stock | 828.50 | Income Before Taxes | 1,637.30 | |||
Other Long Term Assets | 120.90 | Retained Earnings | 5,401.70 | Income Taxes | 618.10 | |||
Total Long-Term Assets | 4,712.30 | Total Shareholder's Equity | 6,230.20 | Net Income | 1,019.20 | |||
Total Assets | 9,878.80 | Total Liabilities & Equity | 9,878.80 | |||||
Number of Common Stock | ||||||||
Shares Outstanding | 1,032,271 | |||||||
Input Answers Below | Financial Performance Summary | |||||||
LIQUIDITY RATIOS | ||||||||
Current Ratio (times) | ||||||||
Quick Ratio (times) | ||||||||
Average Payment Period (days) | ||||||||
ASSET MANAGEMENT RATIOS | ||||||||
Total Asset Turnover (times) | ||||||||
Average Collection Period (days) | ||||||||
Inventory Turnover (times) | ||||||||
FINANCIAL LEVERAGE RATIOS | ||||||||
Total Debt to Total Assets | ||||||||
Equity Multiplier (times) | ||||||||
PROFITABILITY RATIOS | ||||||||
Operating Profit Margin | ||||||||
Net Profit Margin | ||||||||
Return on Total Assets | ||||||||
Return on Equity | ||||||||
Earnings per Share |
Required - Using the attached- below- financial statements for Coca-Cola calculate the following ratios for 2014 - Hint: use excel to set up the formulas and amounts to calculate (see below chart)
https://www.sec.gov/Archives/edgar/data/21344/000002134415000005/a2014123110-k.htm
Liquidity ratio | |
Current assets | 92023 |
Current liabilities | 32374 |
Current ratio is current asset/current liabilities | 92023/32374= 2.84 |
Quick assets=current assets- inventory + prepaid expenses | 92023-3100+3066= 91989 |
Quick ratio is quick assets/current liabilities | 91989/32374= 2.84 |
Calculate debt to equity ratio= Total liabilities/ total stockholder equity | |
Times interest earned= Earnings before interest and taxes (EBIT)/interest expense | |
Return on Net Operating Assets â RNOA Net Operating assets RNOA= NPOAT/Average NOA | |
Net Operating Profit After Taxes â NOPAT Net operating profit after taxes= net income- (nonperatinge revenues-nonoperating expenses)x(1-marginal tax rates) | |
Net Operating Profit Margin â NOPM NPOM= NOPAT/Sales Revenue | |
Net Operating Asset Turnover â NOAT NOAT= Sales/Average NOA |
Note 1 | Coca-Cola | ||||
Operating Assets | |||||
Total assets - Non-operating assets | |||||
(ie NOA = Total assets less Short-term investments + Other investments | |||||
Operating Liabilities | |||||
Total liabilities - Non-operating liabilities | |||||
ie NOL = Total liabilities - Loans and notes payable + Current maturities of long-term debt+Long-term debt) |
P14-3 Performratio analysis and evaluate financial position and operatingresults | |||||||||
Condensed balance sheet andincome statement data for Landwehr Corporation appear | |||||||||
below and on page 644. | |||||||||
LANDWEHR CORPORATION | |||||||||
Balance Sheets | |||||||||
December 31 | |||||||||
2018 | 2017 | 2016 | |||||||
Cash | 25,000 | 20,000 | 18,000 | ||||||
Accounts receivable (net) | 50,000 | 45,000 | 48,000 | ||||||
Other current assets | 90,000 | 95,000 | 64,000 | ||||||
Investments | 75,000 | 70,000 | 45,000 | ||||||
Plant and equipment (net) | 400,000 | 370,000 | 358,000 | ||||||
640,000 | 600,000 | 533,000 | |||||||
Current liabilities | 75,000 | 80,000 | 70,000 | ||||||
Long-term debt | 80,000 | 85,000 | 50,000 | ||||||
Common stock, $10 par | 340,000 | 310,000 | 300,000 | ||||||
Retained earnings | 145,000 | 125,000 | 113,000 | ||||||
640,000 | 600,000 | 533,000 | |||||||
LANDWEHR CORPORATION | |||||||||
Income Statement | |||||||||
For the Years Ended December 31 | |||||||||
2018 | 2017 | ||||||||
Sales revenue | $740,000 | $700,000 | |||||||
Less: Sales returns and allowances | 40,000 | 50,000 | |||||||
Net sales | 700,000 | 650,000 | |||||||
Cost of goods sold | 420,000 | 400,000 | |||||||
Gross profit | 280,000 | 250,000 | |||||||
Operating expenses (including income taxes) | 235,000 | 220,000 | |||||||
Net income | $45,000 | $30,000 | |||||||
Additional information: | |||||||||
1. The market price of Landwehr's common stock was$4.00, $5.00, and $8.00 for | |||||||||
2016, 2017 and 2018,respectively. | |||||||||
2. All dividends are paid in cash. | |||||||||
Instructions | |||||||||
(a) | Compute the following ratios for 2017 and2018. | ||||||||
(1) Profit margin. | |||||||||
(2) Asset turnover. | |||||||||
(3) Earnings per share (Weighted-average commonshares in 2018 were 32,000 and | |||||||||
in 2017 were31,000.) | |||||||||
(4) Price-earnings ratio. | |||||||||
(5) Payout ratio. | |||||||||
(6) Debt to assets ratio. | |||||||||
(b) | Based on the ratios calculated, discuss briefly theimprovement or lack thereof in | ||||||||
financial position and operating results from 2017to 2018 of Landwehr Corporation. | |||||||||
NOTE: Enter a number in cellsrequesting a value; enter either a number or a formula in cellswith a "?" . | |||||||||
2017 | 2018 | |||||||||
(a) | Profit margin: | Profit margin: | ||||||||
Net income | Value | Net income | Value | |||||||
Net sales | Value | Net sales | Value | |||||||
Asset turnover: | Asset turnover: | |||||||||
Net sales | Value | Net sales | Value | |||||||
Average total assets | Value | Average total assets | Value | |||||||
Earnings per share: | Earnings per share: | |||||||||
Net income - Pfd. Dividends | Value | Net income - Pfd. Dividends | Value | |||||||
Weighted average common shares outstanding | Value | Weighted average common shares outstanding | Value | |||||||
Price-earnings ratio: | Price-earnings ratio: | |||||||||
Market price per share | Value | Market price per share | Value | |||||||
Earnings per share | Value | Earnings per share | Value | |||||||
Payout ratio: | Payout ratio: | |||||||||
Cash dividends declared on common | Value | Cash dividends declared on common | Value | |||||||
Net income | Value | Net income | Value | |||||||
Debt to assets ratio: | Debt to assets ratio: | |||||||||
Total liabilities | Value | Total liabilities | Value | |||||||
Total assets | Value | Total assets | Value | |||||||
(b) | Based on the ratios calculated, discuss briefly theimprovement or lack thereof in financial position and operatingresults | |||||||||
from 2017 to 2018 of Landwehr Corporation. | ||||||||||