Question

Ratios Compared with Industry Averages Packard Plastics, Inc., manufactures various plastic and synthetic products. Financial statement data for the firm follow: 2013 (Thousands of Dollars, Except Earnings per Share) Sales revenue $815,000 Cost of goods sold 540,000 Net income 50,500 Dividends 14,000 Earnings per share 4.04

Answer 1

RATIO CALCULATIONS FOR PACKARD PLASTICS QUICK RATIO 0.85 TIMES CURRENT RATIO 2.62 TIMES ACCOUNTS RECEIVABLE TURNOVER 12.75 TIMES INVENTORY TURNOVER 3.75 TIMES CURRRENT ASSETD-INVENTORY QUICK LIABILITIES CURENT ASSETS CURRENT LIABILITIES SALES AVERAGE ACCOUNTS RECEIVABLE COST OF GOODS SOLD AVERAGE INVENTORY DEBT EQUITY GROSS PROFIT* 100 SALES OPERATING PROFIT* 100 SALES EBT*100 AVERAGE TOTAL ASSETS 219000000-148000000 83700000 219000000 83700000 815000000 (66900000+60900000)/2 540000000 (148000000+140000000)/2 150000000 (125000000+80600000) (815000000-540000000)*100 815000000 50500000*100 815000000 50500000*100 (439300000+401500000)/2 DEBT TO EQUITY RATIO 0.73 TIMES GROSS PROFIT PRECENTAGE 33.74 RETURN ON SALES 6.20 RETURN ON ASSETS 12.01 (b) DIVIDEND PER SHARE 1.12 DIVIDEND PAID NO. OF SHARES DIVIDEND PER SHARE* 100 EARNING PER SHARE 14000000 12500000 1.12* 100 4.04 DIVIDEND PAYOUT RATIO 27.72 {c} PRICE EARNING RATIO 11.82 TIMES MARKET PRICE PER SAHRE EARNING PER SHARE 1 DIVIDEND PER SHARE MARKET PRICE PER SAHRE 47.75 4 .04 1.12* 100 47.75 1.12*100 DIVIDEND YIELD 2 2.35 35 %