Question

oriole burgers operates and franchises fast-food restaurants specializing

Pippin Piping Co. For the Years Esded December 3 2016 2015 2014 Sales revenue Cost of goods sold Gross margin $576,600 $523,000 $484,200 291,000 259,200 234,300 285,600 263,800 249,900 106,200 104,600 104,100 179,400 159,200 145,800 15,900 23,900 11,200 10,500 11,900 Income before income tax 190,700 164,600 157.800 Income tax expense(40%) 76,280 65,840 63,120 $114,420 $98,760 $94,680 Operating income other revenue Interest expense Net income Pippin Piping Co Comparative Balance Sheets As of December 31 2014 $32,000 $25,800 $20,500 126,860 127,000 9,300 60,000 80,700 6,000 1,000 10,000 4,600 229,860 243,500 175,400 668,900 576,000 540,300 S898.760 $819,S00 715,700 Assets 016 2015 Cash Accounts receivable (net) Inventory Prepaid expenses Total current assets Property& equipment (net) Total Assets Liabilities and Stockholders' Equity Accounts payable Accrued expenses 53,120 $81,200 79,100 12,240 41,700 64,120 93,440 120,800 170,000 160,0OO 150,000 234,120 253440 270,800 Total current liabilities Long-term debt Total liabiities Stockholders Equity Common stock, $0.50 par value Additional paid-in capital Retained earnings ,000 6,000 000 9,000 99,000 62,000 559,640 461,060 377,900 664,640 566,060 444,900 Total stockholders' equity Total Uabilities and Stockholders Equity $898,760 $819,s00 $715,700 Additional information 2016 2015 2014 $38 $35 $30 12,000 12,000 10,000 Dividends paid per share 13 1.301.25 Closing stock price Shares outstanding

Answer 1

	Working Capital=Current Assets-Current Liabilties
	2014	175400-120800	54600
	2015	243500-93440	150060
	2016	229860-64120	165740
	Current Ratio= Current Assets/Current Liabilties
	2014	175400/120800	1.45
	2015	243500/93440	2.61
	2016	229860/64120	3.58
	Acid Test Ratio= (Current Assets-Inventory-Prepaid Insurance)/Current Liabilties
	2014	(175400-56000-4600)/120800	0.95
	2015	(243500-80700-10000)/93440	1.64
	2016	(229860-60000-11000)/64120	2.48
	Account Receivable Turnover= Net Sales/Average Debtors
	2015	523000/((94300+127000)/2)	4.73
	2016	576600/((127000+126860)/2)	4.54
	Average Collection Period=365/Accounts Receivable Turnover
	2015	365/4.73	77
	2016	365/4.54	80
	Inventory Turnover= COGS/(Average Inventory)
	2015	259200/((56000+80700))/2	0.95
	2016	291000/((80700+60000))/2	1.03
	Average Days to Sell= 365/Inventory Turnover
	2015	365/0.95	385
	2016	365/1.03	353