Calculate the following for each of the years listed A. Debt/ Equity ratio B. Debt/asset ratio C.Profit Margin...

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Finance

Calculate the following for each of the years listed
A. Debt/ Equity ratio
B. Debt/asset ratio
C.Profit Margin (as a %)
D. Gross Margin (as a %)
E. Calculate the change in profit margin over each year
Exhibit 1: Iggy’s Financial Statements, 1994-1999
1994
1995
1996
1997
1998
1999
Income Statement Data
Net revenue
1,000,000
2,500,000
3,000,000
4,000,000
4,500,000
6,000,000
Cost of goods sold
Labor Other
570,000
220,000
350,000
1,700,000
900,000
800,000
1,920,000
1,080,000
840,000
2,520,000
1,480,000
1,040,000
3,195,000
1,890,000
1,305,000
4,000,000
2,340,000
1,740,000
Gross margin
430,000
800,000
1,080,000
1,480,000
1,305,000
2,000,000
Profit after taxes (PAT)
190,000
375,000
480,000
150,000
25,000
140,000
Balance Sheet Data
Current Assets
N/A
200,000
250,000
500,000
500,000
700,000
Net PP&E
N/A
350,000
300,000
300,000
3,000,000
3,000,000
Total Assets
N/A
550,000
500,000
850,000
3,000,000
3,700,000
Long term debt
0
10,000
15,000
20,000
1,500,000
2,000,000

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Transcribed Image Text

Calculate the following for each of the years listedA. Debt/ Equity ratioB. Debt/asset ratioC.Profit Margin (as a %)D. Gross Margin (as a %)E. Calculate the change in profit margin over each yearExhibit 1: Iggy’s Financial Statements, 1994-1999199419951996199719981999Income Statement DataNet revenue1,000,0002,500,0003,000,0004,000,0004,500,0006,000,000Cost of goods soldLabor Other570,000220,000350,0001,700,000900,000800,0001,920,0001,080,000840,0002,520,0001,480,0001,040,0003,195,0001,890,0001,305,0004,000,0002,340,0001,740,000Gross margin430,000800,0001,080,0001,480,0001,305,0002,000,000Profit after taxes (PAT)190,000375,000480,000150,00025,000140,000Balance Sheet DataCurrent AssetsN/A200,000250,000500,000500,000700,000Net PP&EN/A350,000300,000300,0003,000,0003,000,000Total AssetsN/A550,000500,000850,0003,000,0003,700,000Long term debt010,00015,00020,0001,500,0002,000,000

	1994	1995	1996	1997	1998	1999
Income Statement Data
Net revenue	1,000,000	2,500,000	3,000,000	4,000,000	4,500,000	6,000,000
Cost of goods sold Labor Other	570,000 220,000 350,000	1,700,000 900,000 800,000	1,920,000 1,080,000 840,000	2,520,000 1,480,000 1,040,000	3,195,000 1,890,000 1,305,000	4,000,000 2,340,000 1,740,000
Gross margin	430,000	800,000	1,080,000	1,480,000	1,305,000	2,000,000
Profit after taxes (PAT)	190,000	375,000	480,000	150,000	25,000	140,000

Balance Sheet Data
Current Assets	N/A	200,000	250,000	500,000	500,000	700,000
Net PP&E	N/A	350,000	300,000	300,000	3,000,000	3,000,000
Total Assets	N/A	550,000	500,000	850,000	3,000,000	3,700,000
Long term debt	0	10,000	15,000	20,000	1,500,000	2,000,000