Reference no: EM131200982
Assignment
Use the following to answer questions 1-15:
The financial statements of Addison Service Company are given below:
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Addison ServiceCompany
Income Statement (2015)
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Sales
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$8,000,000
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Cost of goods sold
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5,260,000
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Gross profit
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2,740,000
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Selling and administrative expenses
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1,350,000
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| Depreciation |
150,000 |
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Operating profit
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1,240,000
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Interest expenses
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140,000
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Income before tax
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1,100,000
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Tax expense
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440,000
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Net income
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$660,000
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Balance Sheet
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2015
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2014
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Cash
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$200,000
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$50,000
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Accounts receivable
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1,200,000
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950,000
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Inventory
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1,840,000
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1,500,000
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Total current assets
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3,240,000
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2,500,000
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Fixed assets
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3,200,000
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3,000,000
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Total assets
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$6,440,000
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$5,500,000
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Accounts payable
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800,000
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720,000
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Bank loan
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600,000
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100,000
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Total current liabilities
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1,400,000
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820,000
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Bonds payable
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900,000
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1,000,000
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Total liabilities
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2,300,000
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1,820,000
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Common stock(130,000 shares)
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300,000
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300,000
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Retained earnings
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3,840,000
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3,380,000
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Total liabilities & equity
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$6,440,000
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$5,500,000
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Note: The common shares are trading in the stock market for $40 each.
1. The firm's current ratio for 2015 is _____.
2. The firm's quick ratio for 2015 is _____.
3.The cash ratio for 2015 is _____.
4. The firm's interest coverage ratio for 2015 is _____.
5. The firm's average collection period for 2015 is _____.
6. The firm's inventory turnover ratio for 2015 is _____.
7. The firm's asset turnover ratio for 2015 is _____.
8. The firm's financial leverage ratio for 2015 is_______.
9. The firm's profit margin ratio for 2015 is _____ percent.
10. The firm's return on equity ratio for 2015 is _____.
11. The firm's return on assets ratio for 2015 is _____.
12. The firm's P/E ratio for 2015 is _____.
13. The firm's market to book value ratio for 2015 is _____.
14. The firm's price to sales ratio for 2015 is_____.
15. The firm's P/E to growth (PEG) ratio for 2015 is_____.
(Analysts' expect the firm's EPS to grow at a 5% CAGR for the next five years.
16. The firm's Enterprise value (EV)/EBITDA ratio for 2015 is _____.
17. Calculate the firm's return on equity (ROE) using the DuPont identity.
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