ADM 1340 Study Guide - Final Guide: Cif, Issued Shares, Parking Lot
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I would love some help with finding the below ratios for Nike in 2017 10-K Section 4 â Ratio calculations and analysis http://s1.q4cdn.com/806093406/files/doc_financials/2017/ar/docs/nike-2017-form-10K.pdf
| RATIO | FORMULA | CURRENT YEAR | PREVIOUS YEAR |
| Current Ratio | Current Assets Current Liabilities | ||
| Accounts Receivable Turnover | Net Total Sales Avg. Accounts Rec. | ||
| Inventory Turnover | Cost of Goods Sold Average Inventory | ||
| Gross Profit Margin | Gross Profit Net sales | ||
| Net Profit Margin | Net Income Net Sales | ||
| Return on Total Assets | Net Income Avg. Total Assets | ||
| Return on Stockholdersâ Equity | Net Income Avg. Stockholdersâ Eq. | ||
| Earnings Per Share | (given on annual report) | ||
| Market Price Per Share at Year End | (available at Yahoo.com and other websites) | ||
| Price/Earnings Ratio | Year End Market Price Earnings Per Share | ||
| Debt Ratio | Total Liabilities Total Assets | ||
| Equity Ratio | Total Stockholdersâ Eq. Total Assets | ||
| Times Interest Earned | Income before Int. + Tax Interest Expense |
Given the BS and IS for Simmons Mfg. Co., compute the ratios on the next page. For each ratio indicate if Simmons is doing better or worse than the industry average by providing an âxâ in the appropriate box. SHOW CALCULATIONS ON NEXT PAGE BELOW THE CHART. 15 points
SIMMONS MANUFACTURING COMPANY
Balance Sheet
Assets Liabilities and Stockholdersâ Equity
Cash $ 15,000 Accounts Payable $ 21,000
Accts. Receivable 22,000 Notes Payable 20,000
Inventory 30,000 Accrued Expenses 5,000
Current Assets 67,000 Current Liabilities 46,000
Net Fixed Assets 73,000 Long-Term Debt 30,000
Stockholdersâ Equity 64,000
Total Liabilities +
Total Assets $ 140,000 Stockholders equity $140,000
Income Statement
Sales (80% credit) $120,000
Less: COGS 45,000
Gross Profit 75,000
Selling & Administrative Expenses 20,000
Rent Expense (lease) 8,000
EBIT 47,000
Interest Expense 5,000
EBT 42,000
Taxes (25%) 10,500
Net Income $ 31,500
Common Shares outstanding 15,000
EPS $ 2.10
| Ratio | Ratio For Simmons | Industry Average Ratios | Better | Worse |
| Profit margin | 17.5% | |||
| Return on assets | 20.8% | |||
| Return on equity | 35% | |||
| Receivables Turnover | 4.44x | |||
| Avg. Collection Period | 68.0 days | |||
| Fixed asset turnover | 2.4x | |||
| Total asset turnover | .76x | |||
| Quick Ratio | .85 | |||
| Debt to Total Assets | .45 | |||
| Times interest earned | 12.0x |
