BU330C Assignment 8

   

Assignment 08

BU330 Accounting for Managers

Directions: Be sure to make an electronic copy of your answer before submitting it to Ashworth College for grading.

Financial Statement Analysis

The following information relates to Harris Corporation.

  

Account

Current   year

Prior   year

 

Net sales (all credit)

$520,125

$499,500

 

Cost of goods sold 

$375,960

$353,600

 

Gross profit 

$144,165

$145,900

 

Income from operations

$   95,500

$   79,900

 

Interest expense

$   23,500

$   19,500

 

Net income

$   57,600

$   51,600

 

Cash 

$   30,600

$   15,900

 

Accounts receivable, net

$   33,800

$   23,200

 

Inventory 

$   42,000

$   30,300

 

Prepaid expenses

$   2,000

$   1,500

 

Total current assets

$   108,400

$   70,900

 

Total long-term assets

$   62,000

$   38,000

 

Total current liabilities

$   46,000

$   41,600

 

Total long-term liabilities

$   20,000

$   22,700

 

Common stock, no par,

3,000 shares, value $50/share

$   30,000

$   30,000

  

Required:

a. What is the acid-test ratio for the current year?

b. What is the inventory turnover for the current year?

c. What is days' sales in receivables for the current year?

d. What is the book value per share of common stock for the current year?

e. What is the price-earnings ratio for the current year?

f. What is the rate of return on total assets for the current year?

g. What is the times-interest-earned ratio for the current year?

h. What is the current ratio for the current year?