Ask Question, Ask an Expert

+1-415-315-9853

info@mywordsolution.com

Ask Basic Finance Expert

problem: Given the balance sheet & income statement for Simmons Maintenance Company, find out the ratios requested below & indicate whether each is better or worse than the industry average.

SIMMONS MAINTENANCE COMPANY

Balance Sheet

Assets

 

Liabilities

 

Cash

mce_markernbsp;  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

 

 

Stockholders' Equity

 

 

 

 

64,000

Total Assets

$140,000

Total Liabilities & Stockholders

$140,00

 

 

Equity

0

 

Income Statement

Sales (80% credit)

 

$120,000

Less: Cost of Goods Sold

 

     45,000

Gross Profit

 

75,000

Selling and Administrative Expense

20,000

 

Rent Expense (Lease)

   8,000

      28,000

EBIT

 

47,000

Interest Expense

 

        5,000

Earnings before taxes

 

42,000

Taxes (@ 25%)

 

       10,500

Net Income

 

mce_markernbsp;  31,500

Common shares outstanding

 

15,000

EPS

 

mce_markernbsp;      2.10

 

 

Ratio

 

Simmons

 

Industry

Better (B) or

Worse (W)

 

 

 

 

Profit margin

_________________

17.5%

__________________

Return on assets

_________________

20.8%

__________________

Return on equity

__________________

35%

__________________

Receivables turnover

__________________

4.4x

__________________

Avg. collection period

__________________

68.0 days

__________________

Inventory turnover

__________________

3.5x

__________________

Fixed asset turnover

__________________

2.4x

__________________

Total asset turnover

__________________

.76x

__________________

Current ratio

__________________

1.28

__________________

Quick ratio

__________________

.85

__________________

Debt to total assets

__________________

.45

__________________

Times interest earned

__________________

12.0x

__________________

Fixed charge coverage

__________________

3.6x

__________________

Basic Finance, Finance

  • Category:- Basic Finance
  • Reference No.:- M920699

Have any Question? 


Related Questions in Basic Finance

Problem -the balance sheet of perseverance corporation on

Problem - The balance sheet of PERSEVERANCE CORPORATION on December 31, 2005, includes the following cash and receivable balances: Cash - Davao Bank   P 45,000 Currency and coins   16,000 Petty cash fund   1,000 Cash in ...

1 what makes managing employee health and safety programs

1. What makes managing employee health and safety programs around the world so difficult? 2. Why have family-friendly and work-life balance programs become so important? 3. Describe the kinds of health, safety, and secur ...

1 what is the yield to maturity why is the yield to

1. What is the yield to maturity? Why is the yield to maturity a better measure of the interest rate on a bond than is the coupon rate? 2. Write an expression showing the relationship among the price of a coupon bond, th ...

A project has an initial cash outflow of 39800 and produces

A project has an initial cash outflow of $39,800 and produces cash inflows of $18,304, $19,516, and $14,280 for years 1 through 3, respectively. What is the NPV at a discount rate of 11 percent?

1 name possible mortgageable interests in real estate and

1. Name possible mortgageable interests in real estate and comment on their risk as collateral to lenders. 2. What is meant by mortgage foreclosure, and what alternatives are there to such action? 3. Explain the differen ...

1 explain how and why the marketing mix can vary in global

1. Explain how and why the marketing mix can vary in global markets. 2. Explain why consumer products often require more adaptation than industrial products sold in business-to-business markets. 3. Discuss the incentives ...

Discussionresearch a company with an international presence

Discussion Research a company with an international presence. Describe the type of work performed; measures that the company's industry area uses for productivity; and the pitfalls and promise that the metrics provide. W ...

What distinguishes investment management from financial

What distinguishes investment management from financial management? What is the role of a discount rate in decision-making? What is the responsibility of the investment manager with respect to the investment portfolio? D ...

As a financial advisor for the spain development co you

As a financial advisor for the Spain Development Co., you have been given the construction and marketing studies for the proposed Timbercreek office project. Several potential sites have been selected, but a final decisi ...

1 define the followinga time value of moneyb present valuec

1. Define the following: a. Time value of money b. Present value c. Discounting 2. How is the price of a financial asset related to the payments to be received from owning it?

  • 4,153,160 Questions Asked
  • 13,132 Experts
  • 2,558,936 Questions Answered

Ask Experts for help!!

Looking for Assignment Help?

Start excelling in your Courses, Get help with Assignment

Write us your full requirement for evaluation and you will receive response within 20 minutes turnaround time.

Ask Now Help with Problems, Get a Best Answer

WalMart Identification of theory and critical discussion

Drawing on the prescribed text and/or relevant academic literature, produce a paper which discusses the nature of group

Section onea in an atwood machine suppose two objects of

SECTION ONE (a) In an Atwood Machine, suppose two objects of unequal mass are hung vertically over a frictionless

Part 1you work in hr for a company that operates a factory

Part 1: You work in HR for a company that operates a factory manufacturing fiberglass. There are several hundred empl

Details on advanced accounting paperthis paper is intended

DETAILS ON ADVANCED ACCOUNTING PAPER This paper is intended for students to apply the theoretical knowledge around ac

Create a provider database and related reports and queries

Create a provider database and related reports and queries to capture contact information for potential PC component pro