Question

Problem 19-1 Use the financial statements of Helfer Sports Inc. to find the information below for Helfer (Use 365 days a year. Round all answers to 2 decimal places except $ amounts.) Incora statement Sales Coat of goods sold Depreciation Selling admin. expensen ERIT 2017 $ 5.630.000 2,936,000 289.400 1,550,000 854.600 138,000 716.600 320, 300 396,300 Interest expense Taxable income Taxes Net income 2017 2016 48.000 649,000 481.800 $1,179,200 3,060,000 4.239.200 54,000 932.200 648,400 $1,634,600 3.793,000 $ 5,427,600 Balance sheet, Year-End Assets Cash Accounts receivable Inventory Total current assets Fixed assets Total assets Liabilities and stockholders' Equity Accounts payable Short-term debt Total current liabilities Long-term bonds Total liabilities Comon stock Retained earnings Total stockholders' equity Total liabilities and stockholders' equity $ 336,400 491,000 827.400 2,282,400 $ 3,109,800 $ 313,900 815,500 $1,129,400 $ 4,239,200 $ 623,000 762,200 1.385,200 3,049,300 4.434,500 313,900 679,200 $ 993, 100 $5,427,600

Answer 1

a. Asset turnover ratio= total sales/total average assets.
= 5630000/4831900
=1.16

Average total assets= (beginning assets+ending assets)/2
= (5424600+4239200)/2
=4831900

b. Interest coverage ratio= earnings before interest and tax/interest expense.
= 854600/138000
= 6.19

c. Operating profit margin= earnings before interest and taxes/total sales
=854600/5630000
=15.18%

d. Return on equity= net income/total equity
=396,300/1129400
= 35.09%

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