Question

2017 $ 229, 234 114,048 61,344 $ 48,351 2016 $ 215,639 131,376 60,024 $ 45,687 $ 20,289 53,892 17,874 4,855 17,799 13,936 128,645 194,714 33,783 5,717 2,298 10,162 $ 375, 319 $ 20,484 46,671 15, 754 2,132 13, 545 8,283 106,869 170, 430 27,010 5,414 3,206 8,757 $ 321,686 For the Fiscal Years Ended September 30 and September 24, respectively: Net sales Costs of sales Operating income Net income At Year End: Assets Current assets: Cash and cash equivalents Short-term marketable securities Accounts receivable, less allowance of $58 and $53, respectively Inventories Vendor nontrade receivables Other current assets Total current assets Long-term marketable securities Property, plant, and equipment, net Goodwill Acquired intangible assets, net Other assets Total assets Liabilities and Shareholders' Equity Current liabilities: Accounts payable Accrued expenses Deferred revenue Commercial paper Current portion of long-term debt Total current liabilities Deferred revenue-noncurrent Long-term debt Other noncurrent liabilities Total liabilities Shareholders' Equity: Common stock and additional paid-in capital, $0.00001 par value, 12,600,000 shares authorized; 5,126,201 and 5,336,166 shares issued and outstanding, respectively Retained earnings Accumulated other comprehensive income (loss) Total shareholders' equity Total liabilities and shareholders' equity $ 49,049 25,744 7,548 11,977 6,496 100,814 2,836 97,207 40, 415 241,272 $ 37,294 22,027 8,080 8,105 3,500 79,006 2,930 75,427 36,074 193,437 35,867 98,330 (150) 134,047 $ 375,319 31, 251 96,364 634 $ 321,686

Answer 1

Answer -

a. Answer -

	2017	2016
Working capital	$27831	$27863
Current ratio	1.3 times	1.4 times
Acid-test ratio	0.9 times	1.0 times

Calculation:

1. Working capital:

2017:

Working capital = Total current assets - Total current liabilities

Working capital = $128645 - $100814

Working capital = $27831

2016:

Working capital = Total current assets - Total current liabilities

Working capital = $106869 - $79006

Working capital = $27863

2. Current ratio:

2017:

Current ratio = [Total current assets / Total current liabilities]

Current ratio = [$128645 / $100814]

Current ratio = 1.276 ≈ 1.3

2016:

Current ratio = [Total current assets / Total current liabilities]

Current ratio = [$106869 / $79006]

Current ratio = 1.353 ≈ 1.4

3. Acid-test ratio:

2017:

Acid-test ratio = [(Cash and cash equivalents + Short-term marketable securities + Accounts receivable) / Total current liabilities]

Acid-test ratio = [($20289 + $53892 + $17874) / $100814]

Acid-test ratio = 0.913 ≈ 0.9

2016:

Acid-test ratio = [(Cash and cash equivalents + Short-term marketable securities + Accounts receivable) / Total current liabilities]

Acid-test ratio = [($20484 + $46671 + $15754) / $79006]

Acid-test ratio = 1.049 ≈ 1.0

b. Answer -

	2017	2016
ROE	36.9%	36.9%

Calculation:

1. Average stockholders equity:

2017:

Average stockholders equity = [Beginning stockholders equity + Ending stockholders equity] / 2

Average stockholders equity = [$128249 + $134047] / 2

Average stockholders equity = $131148

2016:

Average stockholders equity = [Beginning stockholders equity + Ending stockholders equity] / 2

Average stockholders equity = [$119355 + $128249] / 2

Average stockholders equity = $123802

2. ROE:

2017:

ROE = [Net income / Average stockholders equity] * 100

ROE = [$48351 / $131148] * 100

ROE = 36.868% ≈ 36.9%

2016:

ROE = [Net income / Average stockholders equity] * 100

ROE = [$45687 / $123802] * 100

ROE = 36.903% ≈ 36.9%

c. Answer -

	2017	2016
ROI	13.9%	14.9%
Margin	21.1%	21.2%
Turnover	0.66 times	0.70 times

Calculation:

1. Average total assets:

2017:

Average total assets = [Beginning total assets + Ending total assets] / 2

Average total assets = [$321686 + $375319] / 2

Average total assets = $348502.5

2016:

Average total assets = [Beginning total assets + Ending total assets] / 2

Average total assets = [$290345 + $321686] / 2

Average total assets = $306015.5

2. Margin:

2017:

Margin = [Net income / Net sales] * 100

Margin = [$48351 / $229234] * 100

Margin = 21.092% ≈ 21.1%

2016:

Margin = [Net income / Net sales] * 100

Margin = [$45687 / $215639] * 100

Margin = 21.187% ≈ 21.2%

3. Turnover:

2017:

Turnover = Net sales / Average total assets

Turnover = $229234 / $348502.5

Turnover = 0.6578 times ≈ 0.66 times

2016:

Turnover = Net sales / Average total assets

Turnover = $215639 / $306015.5

Turnover = 0.7047 times ≈ 0.70 times

3. ROI:

2017:

ROI = Margin * Turnover

ROI = 21.1% * 0.6578 times

ROI = 13.87%

2016:

ROI = Margin * Turnover

ROI = 21.2% * 0.7047 times

ROI = 14.93%