Question

PROJECT:

Select any bank / firm of your choice. Take out its financial statements.

Calculate the following ratios according to the information found in these statements.

(NOTE: Show your workings)

1. Operating Cycle. Inventory Number of days of inventory - Average day's cost of goods sold Inventory cost of goods sold / 305 Number of days of receivables = Accounts receivable Average day's sales on credit Accounts receivable Sales on credit / 365 Number of days of payables - Accounts payable Average day's purchases Accounts payable Purchases / 365 2. Liquidity Current ratio - Current assets Current liabilities Quick ratio - Current assets - Inventory Current liabilities Net working capital to sales ratio - Current assets - Current liabilities Sales 3. Profitability Gross profit margin - Gross income Sales Operating profit margin = Operating income Sales Financial Leverage Total debt to assets ratio Total debt Total assets Long-term debt to assets ratio - Long-term debt Total assets Total debt to equity ratio - Total shareholders' equity Total debt

Answer 1

Page No. DONS Page No. INI - Johnson & Johnsonge 2018 (30/12/18] Joventory - 8,599,000 Cost of Goods Sold (Cost of revenue) 27, 383,000 Sales on Credit (Total revenue) 81,906,000 Purchases (Cost of revenue) 27, 383,000 Sales (Total revenue) 81,706,000 Gross inome 54,323,000 .: Operating Encome :19,956,000 Accounts Recovables 14,098.000 Accounts Payables 7,537,000 Curment Asset 46,033,000 Current Liabilities... 31,230,000 I Total debt 35,221,000 £7,537,000 + 27,686,000 Total Assets 152,956,000 Long term dobt 27, 686,000 Cista slone holdeges' equity 59,752,000

Date Operating Cycle Number of days - of Inventory - Inventory Cost of Goods Sold/365 8,599,000 JE . (27, 383,000 /365) 8,599000 75,021.92 114.62 Number of days a Accounts Receivables Sales on Credit / 365 of receivables 14,098,000 81,706,000/365 14,098,000 223852005 = 62.98 - Number of days of payables Account Payable Purchases / 365 7537.000 27, 383,000/365 7537,000 75,021.92 Scanned with CannScannie- 100.46

Date / Liquidity Current Censtent Asset Ratio - Turrent Liabilities 46,033,000 31,230,000 = 1.474 Chuick Ratio : Current Asset - Inventory Current Liabilities 46033000 - 8,599.000 31,230,000 37434000 / 31,230,000 = 10199 Cennent & Cournent Liabilshes Not Working Capital to Sales Ratio Assets Sales 46,033,000 - 31.030, 600 81 706,000 2 DB 1h 803000 / 81, 706,000. los Scanned with 0.181

Profitebility Gross Profil Hangin & Gross income / soles 2 54,323, 000 781 706,000 Do 665 Operating Profil Maorgin - Operating encome / Sales = 19.956,000 / 81, 706,000 0.244 Financial Leverage Total debt to Total debt asset Ratio Total Assets 35221000 152.954000 0.2303 I Long term debt to asset rahio long team debt Total Assets 27, 686,000 152,956,000 = 0.181 Total debt to equity ratio Total debt Total Shane holder's equity 35221000 59,752000 > 0.589

https://finance.yahoo.com/quote/JNJ/balance-sheet?p=JNJ (refered from this site)

note : since all information is available information in brackets () used for calculations