Happy Hamburger Company (130 Points) ________________________________________ Below are the balance sheet and income statement for Happy Hamburger Company. Happy Hamburger Company Balance Sheet as of December 31, 20XX Assets
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| Happy Hamburger Company (130 Points) | |||||||||
| ________________________________________ | |||||||||
| Below are the balance sheet and income statement for Happy Hamburger Company. | |||||||||
| Happy Hamburger Company | |||||||||
| Balance Sheet as of December 31, 20XX | |||||||||
| Assets | Liabilities and Shareholder Equity | ||||||||
| Cash | 78,000 | Accounts payable | 136,000 | ||||||
| Accounts Receivable | 336,500 | Current portion of debt | 82,500 | ||||||
| Inventories | 225,000 | Other current liabilities | 114,000 | ||||||
| Total current assets | 639,500 | Total current liabilities | 332,500 | ||||||
| Net fixed assets | 310,000 | Long-term debt | 252,000 | ||||||
| Total assets | 949,500 | Total Liabilities | 584,500 | ||||||
| Common equity | 365,000 | ||||||||
| Total Liabilities & Equity | 949,500 | ||||||||
| Happy Hamburger Company | |||||||||
| Income Statement for the year ending December 31, 20XX | |||||||||
| Sales | 1,704,560 | ||||||||
| Cost of goods sold | 1,489,000 | ||||||||
| Selling, general and administrative expenses | 152,000 | ||||||||
| Earnings before interest and taxes (EBIT) | 63,560 | ||||||||
| Interest expense | 26,200 | ||||||||
| Earnings before taxes (EBT) | 37,360 | ||||||||
| Federal and state income taxes (40%) | 14,944 | ||||||||
| Net Income | 22,416 | ||||||||
| Required: | |||||||||
| 1 | Calculate the following ratios for the company. | ||||||||
| 2 | Explain whether the company is doing better or worse than the industry average for each ratio. | ||||||||
| Happy | |||||||||
| Hamburger | Industry | ||||||||
| Average | |||||||||
| Current ratio | 1.7 | ||||||||
| Days sales outstanding (based on 365 day year) | 36 days | ||||||||
| Inventory turnover | 7.3 | ||||||||
| Fixed asset turnover | 12.1 | ||||||||
| Total asset turnover | 3 | ||||||||
| Return on sales | 3.20% | ||||||||
| Return on assets | 3.60% | ||||||||
| Return on equity | 9.00% | ||||||||
| Debt ratio | 71% | ||||||||
| Use an Excel spreadsheet for your answers. | |||||||||
10 years ago
Happy Hamburger Company (130 Points) ________________________________________ Below are the balance sheet and income statement for Happy Hamburger Company. Happy Hamburger Company Balance Sheet as of December 31, 20XX Assets
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ratio_calculation_and_analysis.xlsx
