Ask Question, Ask an Expert

+61-413 786 465

info@mywordsolution.com

Ask Accounting Basics Expert

Accounting


Home >> Accounting Basics

Ratio Analysis Compute the ratios below for Blue Bill Corporation based on the financial statements provided. Ending inventory was $1,237.6 for year 2010. After calculating the various ratios, analyze the overall financial health of Blue Bill Corporation. Values presented on the financial statements are in millions.

 

Blue Bill Corporation
Balance Sheet
December 31, 2011
Assets

Liabilities and Shareholders' Equity
Current Assets

Current liabilities
Cash and cash equivalents $     483.2
Short-term debt $      43.4
Receivables (net of allowance)      1,045.1
Long-term debt due within a year        151.6
Inventories      1,249.4
Accounts payable      1,007.7
Other current assets        273.5
Other accrued liabilities        972.7
Total current assets      3,051.2
Total current liabilities      2,175.4
Property, plan and equipment



Land          77.1
Long-term liabilities
Buildings        842.4
Long-term debt      4,559.4
Equipment      3,546.0
Deferred taxes        665.3
Less accumulated depreciation      2,373.7
Other long-term liabilities        784.2
Total property, plant and equipment      2,091.8
Total long-term liabilities      6,008.9
Other noncurrent assets      4,932.6
Shareholders' equity      1,891.3
Total assets $10,075.6
Total liabilities and shareholders' equity $10,075.6





Blue Bill Corporation
Income Statement
2011
Sales $10,495.0
Cost of products sold      6,700.5
Gross Profit      3,794.5
Selling and administrative expense      2,350.9
Operating income      1,443.6
Other income        (18.3)
Earnings before interest and taxes      1,425.3
Interest expense        295.2
Taxes        247.8
Net income $     882.3





Ratio analysis
Liquidity ratios:
Current ratio
Quick ratio


Activity ratios:
Inventory turnover
Receivables turnover
Days sales outstanding
Fixed asset turnover
Total asset turnover


Profitability ratios:
Gross profit margin
Operating profit margin
Net profit margin
Return on assets
Return on equity


Leverage ratios:
Debt / Net worth
Debt ratio


Coverage ratios:
Times-interest-earned




























Accounting Basics, Accounting

  • Category:- Accounting Basics
  • Reference No.:- M9953020

Have any Question?


Related Questions in Accounting Basics

Question - concord corporation had 807000 shares of common

Question - Concord Corporation had 807000 shares of common stock outstanding on January 1, issued 121000 shares on May 1, purchased 66000 shares of treasury stock on September 1, and issued 50000 shares on November 1. Th ...

Question - on december 31 2012 grant williams enterprises

Question - On December 31, 2012, Grant Williams Enterprises, Inc. (GWE) had income from continuing operations before taxes of $1,800,000. Additionally the following items occurred during 2012 which are not included in th ...

Question as the first step of your final project select

Question: As the first step of your final project, select three companies to evaluate for determining which is in the best financial health and would, therefore, be the most profitable investment. • What considerations m ...

Question - consider the following account starting balances

Question - Consider the following account starting balances and transactions involving these accounts. Use T-accounts to record the starting balances and the offsetting entries for the transactions. The starting balance ...

Question - bonita corporation had january 1 and december 31

Question - Bonita Corporation had January 1 and December 31 balances as follows. 1/1/17 12/31/17 Inventory $90,000 $109,000 Accounts payable 53,000 62,000 For 2017, cost of goods sold was $441,000. Compute Bonita's 2017 ...

Question - the social security administration increased the

Question - The Social Security Administration increased the taxable wage base from $118,300 to $120,100. The 6.2% tax rate is unchanged. Joe Burns earned over $120,000 each of the past two years. a. What is the percent i ...

Question - community health center chc is considering

Question - Community Health Center (CHC) is considering spending fifty thousand dollars on a blood analyzer. The annual cash profits from the machine will be seven thousand dollars for each of the seven years of its usef ...

Thinking of the middle east identify where you encounter

Thinking of the Middle East, identify where you encounter products, services, or food items that should be relatively uniform and are based on standard inputs or costs. Identify the items, their standard components, and ...

Question - the following information is available for the

Question - The following information is available for the Starr Air Corporation: Sales - $750,000 Cost of goods sold - 410,000 Gross profit - 340,000 Operating Income - 85,000 Net Income - 42,000 Inventory, beginning yea ...

Question - legacy issues 325000 of 5 four-year bonds dated

Question - Legacy issues $325,000 of 5%, four-year bonds dated January 1, 2017, that pay interest semiannually on June 30 and December 31. They are issued at $292,181 and their market rate is 8% at the issue date. Determ ...

  • 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

Why might a bank avoid the use of interest rate swaps even

Why might a bank avoid the use of interest rate swaps, even when the institution is exposed to significant interest rate

Describe the difference between zero coupon bonds and

Describe the difference between zero coupon bonds and coupon bonds. Under what conditions will a coupon bond sell at a p

Compute the present value of an annuity of 880 per year

Compute the present value of an annuity of $ 880 per year for 16 years, given a discount rate of 6 percent per annum. As

Compute the present value of an 1150 payment made in ten

Compute the present value of an $1,150 payment made in ten years when the discount rate is 12 percent. (Do not round int

Compute the present value of an annuity of 699 per year

Compute the present value of an annuity of $ 699 per year for 19 years, given a discount rate of 6 percent per annum. As

Follow Us

© Copyright 2013-14 mywordsolution.com All rights reserved