a) | |||
Times Interest Earned Ratio = EBIT/ Interest expenses | |||
This Year | Last Year | ||
= $1972000/372000 | = $1559000/312000 | ||
=5.3 times | =5 times | ||
b) | Debt To Equity Ratio = Total Debt / Total Equity | ||
This Year | Last Year | ||
= $7810000/9880000 | = $6260000/9080000 | ||
=0.79 times | =0.69 times | ||
c) | |||
Gross Profit Margin = Gross Profit / Sales | |||
This Year | Last Year | ||
= $3188000/15940000 | = $3595000/14380000 | ||
=20 % | =25 % | ||
d) | Average Assets = (beginning Assets + ending Assets)/2 | ||
This Year | Last Year | ||
= ( $15340000+17690000)/2 | = ( $13150000+15340000)/2 | ||
= $ 16515000 | = $ 14245000 | ||
Return On Assets = Net Income / Average Assets | |||
This Year | Last Year | ||
= $1120000/16515000 | = $1152900/14245000 | ||
=6.8% | =8.1 % | ||
e) | Average Stockholders Equity = (beginning Stockholders Equity + ending Stockholders Equity)/2 | ||
This Year | Last Year | ||
= ( $9080000+9880000)/2 | = ( $8503350+9080000)/2 | ||
= $ 9480000 | = $ 8791675 | ||
Return On Stockholders Equity = Net Income / Average Stockholders Equity | |||
This Year | Last Year | ||
= $1120000/9480000 | = $1152900/8791675 | ||
=11.8 % | =13.1 % | ||
f) | Positive | Positive | |
Let me know the wrong answer. I will correct immediately. Please vote positively. | |||
You have just been hired as a financial analyst for Lydex Company, a manufacturer of safety...
You have just been hired as a financial analyst for Lydex Company, a manufacturer of safety helmets. Your boss has asked you to perform a comprehensive analysis of the company’s financial statements, including comparing Lydex’s performance to its major competitors. The company’s financial statements for the last two years are as follows: Lydex Company Comparative Balance Sheet This Year Last Year Assets Current assets: Cash $ 1,040,000 $ 1,280,000 Marketable securities 0 300,000 Accounts receivable, net 3,020,000 2,120,000 Inventory 3,680,000...
You have just been hired as a financial analyst for Lydex Company, a manufacturer of safety helmets. Your boss has asked you to perform a comprehensive analysis of the company's financial statements, including comparing Lydex's performance to its major competitors. The company's financial statements for the last two years are as follows: Lydex Company Comparative Balance Sheet This Year Last Year Assets Current assets: Cash Marketable securities $ 1,280,000 300,000 2,120,000 2,300,000 210,000 $1,040,000 3,020,000 3,680,000 270,000 Accounts receivable, net...
You have just been hired as a financial analyst for Lydex Company, a manufacturer of safety helmets. Your boss has asked you to perform a comprehensive analysis of the company’s financial statements, including comparing Lydex’s performance to its major competitors. The company’s financial statements for the last two years are as follows: Lydex Company Comparative Balance Sheet This Year Last Year Assets Current assets: Cash $ 1,000,000 $ 1,240,000 Marketable securities 0 300,000 Accounts receivable, net 2,860,000 1,960,000 Inventory 3,640,000...
You have just been hired as a financial analyst for Lydex Company, a manufacturer of safety helmets. Your boss has asked you to perform a comprehensive analysis of the company’s financial statements, including comparing Lydex’s performance to its major competitors. The company’s financial statements for the last two years are as follows: Lydex Company Comparative Balance Sheet This Year Last Year Assets Current assets: Cash $ 980,000 $ 1,220,000 Marketable securities 0 300,000 Accounts receivable, net 2,780,000 1,880,000 Inventory 3,620,000...
You have just been hired as a financial analyst for Lydex Company, a manufacturer of safety helmets. Your boss has asked you to perform a comprehensive analysis of the company’s financial statements, including comparing Lydex’s performance to its major competitors. The company’s financial statements for the last two years are as follows: To begin your assignment you gather the following financial data and ratios that are typical of companies in Lydex Company’s industry: Problem 14-15 Part 1 Required: 1. You...
You have just been hired as a financial analyst for Lydex Company, a manufacturer of safety helmets. Your boss has asked you to perform a comprehensive analysis of the company’s financial statements, including comparing Lydex’s performance to its major competitors. The company’s financial statements for the last two years are as follows: Lydex Company Comparative Balance Sheet This Year Last Year Assets Current assets: Cash $ 920,000 $ 1,160,000 Marketable securities 0 300,000 Accounts receivable, net 2,540,000 1,640,000 Inventory 3,560,000...
You have just been hired as a financial analyst for Lydex Company, a manufacturer of safety helmets. Your boss has asked you to perform a comprehensive analysis of the company’s financial statements, including comparing Lydex’s performance to its major competitors. The company’s financial statements for the last two years are as follows: Lydex Company Comparative Balance Sheet This Year Last Year Assets Current assets: Cash $ 880,000 $ 1,120,000 Marketable securities 0 300,000 Accounts receivable, net 2,380,000 1,480,000 Inventory 3,520,000...
You have just been hired as a financial analyst for Lydex Company, a manufacturer of safety helmets. Your boss has asked you to perform a comprehensive analysis of the company's financial statements, including comparing Lydex's performance to its major competitors. The company's financial statements for the last two years are as follows: Last Year Lydex Company Comparative Balance Sheet This Year Assets Current assets: Cash $ 820,000 Marketable securities Accounts receivable, net 2,860,000 Inventory 3,640,000 Prepaid expenses 270,000 $ 1,060,000...
ou have just been hired as a financial analyst for Lydex Company, a manufacturer of safety helmets. Your boss has asked you to perform a comprehensive analysis of the company’s financial statements, including comparing Lydex’s performance to its major competitors. The company’s financial statements for the last two years are as follows: Lydex Company Comparative Balance Sheet This Year Last Year Assets Current assets: Cash $ 960,000 $ 1,260,000 Marketable securities 0 300,000 Accounts receivable, net 2,700,000 1,800,000 Inventory 3,900,000...
You have just been hired as a financial analyst for Lydex Company, a manufacturer of safety helmets. Your boss has asked you to perform a comprehensive analysis of the company's financial statements, including comparing Lydex's performance to its major competitors. The company's financial statements for the last two years are as follows: Lydex Company Comparative Balance Sheet This Year Last Year $ 920,000 0 2,540,000 3,560,000 250,000 7,270,000 9,440,000 $ 16,710,000 $ 1,160,000 300,000 1,640,000 2,100,000 190,000 5,390,000 9,010,000 $14,400,000...