Calculate the ratios

Question

Question: Given the balance sheet & income statement for Simmons Maintenance Company, calculate the ratios requested below & indicate whether each is better or worse than the industry average.

SIMMONS MAINTENANCE COMPANY Balance Sheet
Assets		Liabilities
Cash	mce_markernbsp;  15,000	Accounts Payable	$
			21,000
Accts. Receivable	22,000	Notes Payable	20,000
Inventory	30,000	Accrued Expenses
			5,000
Current Assets	67,000	Current Liabilities	46,000
Net Fixed Assets	73,000	Long-term Debt	30,000
		Stockholders' Equity
			64,000
Total Assets	$140,000	Total Liabilities & Stockholders	$140,00
		Equity	0

 

Income Statement
Sales (80% credit)		$120,000
Less: Cost of Goods Sold		45,000
Gross Profit		75,000
Selling and Administrative Expense	20,000
Rent Expense (Lease)	8,000	28,000
EBIT		47,000
Interest Expense		5,000
Earnings before taxes		42,000
Taxes (@ 25%)		10,500
Net Income		mce_markernbsp;  31,500
Common shares outstanding		15,000
EPS		mce_markernbsp;      2.10

 

Ratio	Simmons	Industry	Better (B) or Worse (W)
Profit margin	_________________	17.5%	__________________
Return on assets	_________________	20.8%	__________________
Return on equity	__________________	35%	__________________
Receivables turnover	__________________	4.4x	__________________
Avg. collection period	__________________	68.0 days	__________________
Inventory turnover	__________________	3.5x	__________________
Fixed asset turnover	__________________	2.4x	__________________
Total asset turnover	__________________	.76x	__________________
Current ratio	__________________	1.28	__________________
Quick ratio	__________________	.85	__________________
Debt to total assets	__________________	.45	__________________
Times interest earned	__________________	12.0x	__________________
Fixed charge coverage	__________________	3.6x	__________________