Reference no: EM132537959

Understanding Financial Statements BMC CORPORATION INCOME STATEMENT FISCAL YEAR ENDING 12/31/2004 (DOLLARS IN THOUSANDS)

Net Sales $1025

Cost of Goods Sold 682

Gross Profit Margin 343

Depreciation 31

Operating Expense 103

Administrative Expense 127

Operating Profit 82

Interest 27

Profit Before

Tax 55

Taxes 17

Net Income $ 38

BMC CORPORATION BALANCE SHEET FISCAL YEAR ENDING 12/31/2004 (DOLLARS IN THOUSANDS)

Assets                                                                                           Liabilities

Cash $ 61                                                                           Notes payable $ 223

Accts rec 286 Accounts payable 152                                               Inventory 354

Accruals 32 Ttl cur assts 701                                                            Total current liabilities 407

Net fixed assets 802                                                                           Long term debt 306

Common stock ($1.50 par) 102                                                                Paid in surplus 226

Retained earnings 462                                                                         Total liabilities and Total assets $1503

Stockholders' equity $1503

Question 1: Calculate and comment of each of the following ratios: i. Current ratio ii. Quick or acid-test ratio iii. Average payment period iv. Total Assets Turnover v. Fixed Assets Turnover vi. Average Collection Period vii. Inventory Turnover viii. Profit Margin ix. Return on Equity x. Debt Ratio