|
|
| | | Consider the following data given in random order for GD Inc. at December 31, |
| | | 2018, the end of its fiscal year: |
| | | Revenues | | | 800,000 |
| | | Cash | | | 200,000 |
| | | Accounts receivable | | | 250,000 |
| | | Salary expenses | | | 120,000 |
| | | Salary payable | | | ? |
| | | Current ratio | | | 10x |
| | | Property, plant and equipment | | | ? |
| | | Depreciation | | | 10,000 |
| | | Dividends | | | ? |
| | | Opening Retained Earnings | | | 300,000 |
| | | Inventory | | | 500,000 |
| | | Cost of sales | | | 40% |
| | | Interest expense/ rate | | | 10% |
| | | Long-term investments (bonds) | | | 200,000 |
| | | Other operating expenses | | | ? |
| | | Interest coverage rate | | | 3x |
| | | Long-term debt (issued Jan 1, 2006) | | | 500,000 |
| | | Common shares | | | 600,000 |
| | | Current liabilities = salary payable |
| | | Ending Retained Earnings | | | ? |
| | | No other balance sheet or income statement accounts |
| | | Return on total assets | | | 5% |
| | | Income tax rate | | | 25% |
| | 1) | Prepare a Balance Sheet, Income Statement and Statement of Retained Earnings |
| | 2) | Analyze the Company based on the ratios below. |
| | | Additional Information: |
| | | | | | Competitor |
| | | | | | Averages |
| | | Current Ratio | | | 3x |
| | | Long-term Debt/ Equity | | | 1:1 |
| | | Interest Coverage | | | 2x |
| | | Profit Margin | | | 12% |
| | | ROE | | | 14% |
| | | ROA | | | 8% |
| | | Inventory turnover | | | 3x |
| | | Fixed asset turnover | | | 1.5x |
| | | Cash Conversion Cycle | | | 75 days |
mamanekhoob
RatiosBuildFSandCalc.RatioswithoutA.xls
