Compute the comparable financial ratios for next fiscal year

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Reference no: EM13808252

An analysis of last year's financial statements produced the following results.

Current ratio                                                                      3.6

Quick ratio                                                                         2.2

Average collection period Inventory turnover         78.0 days

Inventory turnover                                                             4.4

Fixed asset turnover                                                         6.4

Operating profit margin                                                11.9%

Net profit margin                                                            6.1%

Return on assets                                                           8.8%

Return on equity                                                          13.7%    

Debt ratio                                                                    35. 5%

Times-interest-earned                                                    9.3X

Payout ratio                                                                  41.4%

Use the following data to compute the comparable financial ratios for next fiscal year. Has the firm's financial position changed?

Current assets  

Cash and short—term investments                     $ 14,657,000

Accounts receivable                                  71,873,000

Inventory                                              56,372,000

Plant and equipment                                           26,881,000

Long-term investments and other assets                     20,606,000

Total assets                                              $190,389,000

Current liabilities                                         $ 37,481,000

Long-term debt                                            17,895,000

Equity                                                    135,013,000

Total liabilities and equity                                $190,389,000

Sales                                                    $254,553,000

Cost of goods sold                                            149, 903,000               

Selling, administrative, and other expenses                   69,609,000

Earnings before interest and taxes                            35,041,000

Interest                                                     2,529,000

Taxes                                                     13,972,540

Net Income                                               $18,540,000

Earning Per Share                                               $4.13

Dividends per share                                              $1.80

Average Inventory = $56,530,000

Reference no: EM13808252

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