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(Solved) 20) Using the financial statements for the Snider Corporation,


20)

Using the financial statements for the Snider Corporation, calculate the 13 basic ratios found in the chapter.

???

SNIDER CORPORATION
Balance Sheet
December 31, 2013
??Assets ? ? ? ? ? ?
??Current assets: ? ? ? ? ? ?
?????Cash ? ? ? $ 52,500 ?
?????Marketable securities ? ? ? ? 22,500 ?
?????Accounts receivable (net) ? ? ? ? 178,000 ?
?????Inventory ? ? ? ? 290,000 ?
? ? ? ? ?
????????Total current assets ? ? ? $ 543,000 ?
??Investments ? ? ? ? 66,200 ?
? ? ? ? ? ? ?
??Plant and equipment. $ 611,000 ? ? ? ?
?????Less: Accumulated depreciation ? 272,000 ? ? ? ?
? ? ? ?
?????Net plant and equipment ? ? ? ? 339,000 ?
? ? ? ? ?
??Total assets ? ? ? $ 948,200 ?
? ? ? ? ?
??Liabilities and Stockholders' Equity ? ? ? ?
??Current liabilities: ? ? ? ? ? ?
?????Accounts payable ? ? ? $ 95,100 ?
?????Notes payable ? ? ? ? 78,700 ?
?????Accrued taxes ? ? ? ? 12,000 ?
? ? ? ? ?
????????Total current liabilities ? ? ? $ 185,800 ?
??Long-term liabilities: ? ? ? ? ? ?
?????Bonds payable ? ? ? ? 159,400 ?
? ? ? ? ?
?????Total liabilities ? ? ? $ 345,200 ?
??Stockholders' equity ? ? ? ? ? ?
?????Preferred stock, $50 par value ? ? ? $ 100,000 ?
?????Common stock, $1 par value ? ? ? ? 80,000 ?
?????Capital paid in excess of par ? ? ? ? 190,000 ?
?????Retained earnings ? ? ? ? 233,000 ?
? ? ? ? ?
????????Total stockholders' equity ? ? ? $ 603,000 ?
? ? ? ? ?
??Total liabilities and stockholders' equity ? ? ? $ 948,200 ?
? ? ? ? ?

???

SNIDER CORPORATION
Income Statement
For the Year Ending December 31, 2013
??Sales (on credit) $ 2,067,000 ?
??Cost of goods sold ? 1,323,000 ?
?
??Gross profit $ 744,000 ?
??Selling and administrative expenses ? 516,000 *
?
??Operating profit (EBIT) $ 228,000 ?
??Interest expense ? 30,100 ?
?
??Earnings before taxes (EBT) $ 197,900 ?
??Taxes ? 83,000 ?
?
??Earnings after taxes (EAT) $ 114,900 ?
?
*Includes $39,600 in lease payments.

???

Using the above financial statements for the Snider Corporation, calculate the following ratios.

??

a.

Profitability ratios.?(Do not round intermediate calculations. Input your answers as a percent rounded to 2 decimal places.)

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?

? ??????Profitability Ratios
??Profit margin ?% ?
??Return on assets (investment) ?% ?
??Return on equity ?% ?


?

b.

Assets utilization ratios.?(Do not round intermediate calculations. Round your answers to 2 decimal places.)


?

? Assets Utilization Ratios
??Receivable turnover ?times
??Average collection period ?days
??Inventory turnover ?times
??Fixed asset turnover ?times
??Total asset turnover ?times

???
?

c.

Liquidity ratios.?(Do not round intermediate calculations. Round your answers to 2 decimal places.)

??
?

? Liquidity Ratios
??Current ratio ?times
??Quick ratio ?times

??
?

d.

Debt utilization ratios.?(Do not round intermediate calculations. Input your debt to total assets answer as a percent rounded to 2 decimal places. Round your other answers to 2 decimal places.)

??
?

? Debt Utilization Ratios
??Debt to total assets ?%
??Times interest earned ?times
??Fixed charge coverage ?times



 


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Oct 15, 2019

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