11:06 & Review the following financial data, then answer the questions below. Income Statement and Balance Sheet Company X Income Statement FYE 2014 and 2015 Period Ending 31-Jan-15 31-Jan-14 $ $ 485,651,000 476,294,000 Total Sales Cost of Goods 365,086,000 358,069,000 Gross Profit 120.565,000 118,225,000 Selling General and Administrative 93,418,000 91,353,000 27,147,000 26,872,000 Operating Profit Total Other Income/Expenses Net 113,000 119,000 Earnings Before Interest And Taxes 27,034,000 26,753,000 Interest Expense 2,461,000 2,335,000 24,573,000 24,418,000 Income Before Tax Income Tax Expense 7,985,000 8,105,000 A 16,313,000 144,000 11:06 & Co Net Income From Continuing Ops 16,588,000 Discontinued Operations 285,000 Net Income (Net Profit) 16,303,000 14,000,000 shares outstanding S Market Share price per share 10.00 16,169.000 S 9.00 Company X Balance Sheet FYE 2014 and 2015 Period Ending 31-Jan-15 31-Jan-14 Assets Current Assets Cash and Cash Equivalents $ 9,135,000 $ 7,281,000 Net Receivables 6.778,000 6,677,000 45,141,000 44,858,000 Inventory Other Current Assets 2,224,000 2,369,000 Total Current Assets 63,278,000 61,185,000 Property Plant and Cantimant 116 656 117007 on O 11:06 O&Go Property Plant and Equipment 116,655,000 117,907,000 Goodwill 18,102,000 19,510,000 Other Assets 5,671,000 6,149,000 Total Assets 203,706,000 204,751,000 Liabilities Current Liabilities 58,583,000 57,174,000 6,689,000 12,082,000 Accounts Payable Short/Current Long Term Debt Other Current Liabilities Total Current Liabilities 89,000 65,272,000 69,345,000 43,692,000 44,559,000 Long Term Debt Deferred Long Term Liability Charges 8,805,000 8,017,000 Minority Interest 4,543,000 5,084,000 Total Liabilities 122,312,000 127,005,000 Miscellaneous Stocks Options Warrants 0 0 Common Stock 323,000 323,000 Retained Farninne 76 566 Ann 1 25 777 nnn O 11:06 asco Retained Earnings 85,777,000 76,566,000 2,462,000 2,362,000 Capital Surplus Other Stockholders Equity Total Stockholders Equity -7,168,000 -1,505,000 81,394,000 77,746,000 Total Liabilities + Stockholders' $ $ Equity 203,706,000 204,751,000 Number of Shares Outstanding 14,000,000 14,000,000 $ $ Market Share price per share 10.00 9.00 Part 2 Define the ten financial ratios below. Financial Ratios: 1. Current Ratio 2. Quick Ratio 3. Accounts Receivable Turnover as a multiple 4. Accounts Payable Turnover as a multiple 5. Return on Equity as a percent 6. Return on Assets as a percent 7. Operating Profit Margin as a percent 8. Net Profit (after tax) Margin as a percent Part 3. Classify, calculate, and assess a) Liquidity and Turnover management of Current Assets and Liabilities, b) Profitability, and c) Market Value ratios. Please note outcomes as a multiple, percent, or dollar value. a. Liquidity and Turnover management of Current Assets and Liabilities In this section, properly classify which of the above (from Part 2) are the liquidity and turnover ratios. Then, using the data from the Income Statement and Balance Sheet, provide the correct calculation of these four liquidity and turnover ratios and an assessment of the company's ability to maintain liquidity and the management of current assets and current liabilities. 11:07 & CO Include the proper assessment of outcomes as positive or negative trends when all four ratio outcomes are factored as a group. b. Profitability In this section, properly classify which of the above (from Part 2) are the profitability ratios. Then using the data from the Income Statement and Balance Sheet, provide the correct calculation of these four profitability ratios and an assessment of the company's ability to maintain if not improve profitability based on the amounts of Equity, Assets, and levels of profits from Sales. Include the proper assessment of outcomes as positive or negative trends when all four ratio outcomes are factored as a group C. Market Value In this section, use the price per share data, the Income Statement and Balance Sheet to provide the correct calculation these two Market Value ratios Earnings per Share (EPS) and Price to Earnings (P/E) ratio. Given the changes of EPS from one year to the next, what is your assessment of the company's net income theoretically available for payment for investors holding common stock? As an investor to what extent are you more or less confident of the company's ability to add value to your ownership position? Based on the company's P/E ratio changes from one year to the next what might this tell us about either 11:07 & Based on the company's P/E ratio changes from one year to the next what might this tell us about either investor sentiments of future profits, or stock price/value given the ability to generate income at a set price
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