Assignment
Use the following to answer questions 1-15:
The financial statements of Addison Service Company are given below:
|
Addison ServiceCompany
Income Statement (2015)
|
|
Sales
|
$8,000,000
|
|
Cost of goods sold
|
5,260,000
|
|
Gross profit
|
2,740,000
|
|
Selling and administrative expenses
|
1,350,000
|
| Depreciation |
150,000 |
|
Operating profit
|
1,240,000
|
|
Interest expenses
|
140,000
|
|
Income before tax
|
1,100,000
|
|
Tax expense
|
440,000
|
|
Net income
|
$660,000
|
|
Balance Sheet
|
|
|
|
|
2015
|
2014
|
|
Cash
|
$200,000
|
$50,000
|
|
Accounts receivable
|
1,200,000
|
950,000
|
|
Inventory
|
1,840,000
|
1,500,000
|
|
Total current assets
|
3,240,000
|
2,500,000
|
|
Fixed assets
|
3,200,000
|
3,000,000
|
|
Total assets
|
$6,440,000
|
$5,500,000
|
|
|
|
|
|
Accounts payable
|
800,000
|
720,000
|
|
Bank loan
|
600,000
|
100,000
|
|
Total current liabilities
|
1,400,000
|
820,000
|
|
Bonds payable
|
900,000
|
1,000,000
|
|
Total liabilities
|
2,300,000
|
1,820,000
|
|
Common stock(130,000 shares)
|
300,000
|
300,000
|
|
Retained earnings
|
3,840,000
|
3,380,000
|
|
Total liabilities & equity
|
$6,440,000
|
$5,500,000
|
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.