Problem: I want assistance in figuring out the following:
Use the information contained in Huffman Trucking Co. balance sheet and income statement to calculate the following ratios (balance sheet and income statements below:
- Liquidity ratios
- Current ratio
- Acid-test (quick) ratio
- Receivables turnover
- Inventory turnover
- Profitability ratios
- Asset turnover
- Profit margin
- Return on assets
- Return on common stockholders¿ equity
- Solvency ratios
- Debt to total assets
- Times interest earned
Be sure to show your calculations for each ratio & prepare a horizontal and vertical analysis for the balance sheet and the income statement.
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Huffman Trucking
Balance Sheet
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(Unaudited)
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December 31st
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2006
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2005
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(In Thousands)
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Assets
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Current Assets
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Cash & Cash Equivalents
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$51,993
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$38,893
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Accounts Receivable
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56,292
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57,441
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Prepaid Expenses & Supplies
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3,443
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3,343
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Total Current Assets
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$111,728
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$99,677
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Carrier Operating Property (at cost)
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$73,024
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$70,957
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Less: Allowance for Depreciation
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(57,536)
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(55,477)
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Net Carrier Operating Property
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$15,488
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$15,480
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Assets of Discontinued Operations
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16,192
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18,891
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Goodwill (net)
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57,767
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53,977
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Other Assets
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26,613
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24,194
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Total Assets
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$227,788
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$212,219
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Liabilities and Shareholders' Equity
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Current Liabilities
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Accounts Payable
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$47,124
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$39,936
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Salaries & Wages
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29,753
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27,048
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Current Portion of Long-Term Debt
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2,204
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2,514
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Freight & Casualty Claims Payable
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9,746
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8,941
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Total Current Liabilities
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$88,827
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$78,439
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Long-Term Liabilities
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Accrued Pension & Post-Retirement Health Care
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$58,362
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$52,721
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Long-Term Debt
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13,431
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15,318
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Total Long-Term Liabilities
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$71,793
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$68,039
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Shareholders' Equity
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Common Stock ($1.00 par value Authorized: 20,000,000 shares)
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$3.882
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$3.882
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Treasury Shares
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(1.952)
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(1.952)
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Retained Earnings
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67,166
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65,739
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Total Shareholders' Equity
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$67,168
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$65,741
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Total Liabilities and Shareholders' Equity
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$227,788
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$212,219
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Huffman Trucking
Statement of Income
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(Unaudited)
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December 31st
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2006
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2005
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(In Thousands)
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Revenue
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$879,944
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$807,288
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Operating Expenses
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Salaries, Wages & Benefits
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$353,739
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$330,597
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Fuel Expense
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217,363
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192,357
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Operating Supplies and Expenses
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152,318
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136,319
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Purchased Transportation
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89,957
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82,529
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Operating Taxes & Licenses
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18,613
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17,989
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Insurance & Claims
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13,526
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13,006
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Provision for Depreciation
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2,726
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2,738
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Total Operating Expenses
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$848,242
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$775,535
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Operating Income form Continuing Operations
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$31,702
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$31,753
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Interest Expense
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$790
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$901
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Tax Expense
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11,701
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12,050
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Net Income
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$19,211
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$18,802
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