Calculate the indicated ratio construct the dupoint equation

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Reference no: EM132480894

Receivables                           336.000

Notes payable                         84,000

Inventones                           241 500

Other current liabilities            117,000

Total current assets                $655.000

Total current liabilities              $330,000

Net fixed assets                    292 500

Long-term debt                    256,500

Common equity                   361,000

Total assets                        $947.500

Total liabilities and equity         $947,500

Campsey Computer Company. Income Statement for Year Ended December 31

Sales                                                       $1,607,500

Cost of goods sold                                        (1,353,000)

Gross profit                                               $ 254,500

Fixed operating expenses except depreciation    (143,000)

Earnings before interest, taxes, depreciation,

and amortization (EBITDA)                              $ 111,500

Depreciation                                                  (41,500)

Earnings before interest and taxes (EBIT)             $ 70,000

Interest                                                           (24.500)

Earnings before taxes (EBT)                                  $ 45,500

Taxes (40%%)                                                    ( 18,200)

Net income                                                        $ 27,300

Ratio                                            Campsey Industry Average

Current ratio                                       2.0x

Days sales outstanding                            35.0 days

Inventory turnover                                 5.6x

Total assets turnover                                  3.0x

Net profit margin                                      1.2%

Return on assets (ROA)                             3.6%

Return on equity (ROE)                            9.0%

Debt ratio                                               60.0%

Question 1: Calculate the indicated Ratios 2Construct the Dupoint equation for both Campsey and the industrys 3 outline campsey strength and weaknesses

Cash 77500 Accounts payable 129000

Reference no: EM132480894

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