Balance Sheet March 31, 2021 Assets: Cash Accounts Receivable Merchandise Inventory Plant and Equipment 12,300...
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Balance Sheet March 31, 2021 Assets: Cash Accounts Receivable Merchandise Inventory Plant and Equipment 12,300 36,000 60,800 151,000 Liabilities and Equity: Accounts Payable Accrued expenses Other current liabilities Long-term debt 10% Preference share capital Ordinary share capital Retained Earnings 31,500 1,200 26,000 34,000 40,000 100,000 27,400 Total Assets P260,100 Total Liabilities and Equity P260,100 Income Statement March 31, 2021 225,000 Sales Less: Cost of goods sold Selling expenses Administrative expenses Research and development exp. Interest expense Earnings before taxes Less: Income tax (35%) Net income Dividends paid to equity holders 152,500 29,500 14,800 6,500 2.900 206,200 18,800 6,580 12,220 5,000 Financial Ratios of Company Current ratio 1.86 Stock turnover 2.51 Collection period 58 days Debt to Equity 55% Interest coverage ratio 7.48 times Asset turnover 0.58 times Net profit ratio (before tax) 8.36% Return on Equity 5.45% Financial Ratios of industry 2.2 2.8 times 56 days 45% 10 times 1.35 times 1.9% 10.9% Required: Analyze the company's strengths and weaknesses in terms of liquidity, solvency and profitability. (30 points)
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