The financial statements for XYZ Inc. are shown below. Income Statement and other info: 2020 2019 Year-end stock...

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Finance

The financial statements for XYZ Inc. are shown below.
Income Statement and other info:
2020 2019
Year-end stock price 60 50
# of shares 5600 3600
XYZ Inc. Income Statement
2020 2019
Sales 900,000 960,000 850,000
COGS 640,000 610,000
Gross Profit 320,000 240,000
Operating costs (excluding depreciation) 70,000 50000 60,000
EDITDA 180,000 270,000 180,000
Depreciation 15,000 20,000 18,000
EBIT 165,000 250,000 162,000
Interest Expense 100,000 100000 100,000
EBT 65,000 150,000 62,000
Taxes 19,500 25,000 5,000
Net Income 45,500 125,000 57,000
Common Dividends 4,550 6000 3000
Addition to Retained Earnings 40,950 119,000 54,000
Balance Sheet
Assets 2018 2017 2020 2019
Cash and Cash Equivalents 40,000 30,000 66,000 128,000
Short term Investments 4,500 8,500 10,500 9000
Accounts Receivable 166,000 190,000 164,000 242,950
Inventories 80,000 70,000 100,000 80,000
Total current assets 290,500 298,500 340,500 459,950
Net Fixed Assets 115,000 90,000 115,000 90,000
Total Assets 405,500 388,500 455,500 549,950
Liabilities and Equity 2017 2016 2020 2,019
Accounts Payable 17,000 14,500 17,000 12,500
Accruals 18,500 14,000 18,500 13,000
Notes Payable 11,000 4,000 11,000 4,000
Total Current Liabilities 46,500 32,500 46,500 29,500
Long term debt 133,000 186,950 133,000 186,950
Total Liabilities 179,500 219,450 179,500 216,450
Common Stock 146,000 130,000 126,000 132,000
Retained Earnings 80,000 39,050 150,000 201,000
Total Common Equity 226,000 169,050 276,000 333,000
Total Liabilities and Equity 405,500 388,500 455,500 549,450
a. Find all of the ratios below:
2020 IA
Liquidity Ratios 3.5
Current Ratio 2
Quick Ratio
Asset Management Ratios
Inventory Turnover 25.39
Days Sales Outstanding 55.08
Total Assets Turnover 2.7
Debt Ratios
Debt Ratio 35%
TIE Ratio 6.5
Debt to Equity Ratio
Profitability Ratios
Profit Margin 12%
Return on Assets 13.50%
Return on Equity 15%
Market Ratios
EPS N/A
P/E ratio 14.78
b. Write a synopsis on how this company compares with theindustry in each section of ratios.
c. Perform a DuPont analysis for XYZ Inc.
ROE = PM * TA Turnover * Equity Multiplier
2020
2019
d. Explain the results in part c.

Answer & Explanation Solved by verified expert

3.9 Ratings (638 Votes)

A Ratio of XYZ are for 2020 XYZ IA Current Ratio 732 350 Quick Ratio 517 200 Inventory Turnover 711 2539 Days Sales Outstanding 8139 5508 Total Asset Turnover 179 270 Debt ratio 32 35 TIE 165 650 Profit Margin 506 12 RoA 905 1350 RoE 1494 15 EPS 813 PE Ratio 738 1478 B The liquidity ratio represents companys ability to continue its operation and to meet its short term obligations The XYZ has almost twice the current and quick ratio as compared to industry average which shows that XYZ is comparatively in better See Answer

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The financial statements for XYZ Inc. are shown below.Income Statement and other info:2020 2019Year-end stock price 60 50# of shares 5600 3600XYZ Inc. Income Statement2020 2019Sales 900,000 960,000 850,000COGS 640,000 610,000Gross Profit 320,000 240,000Operating costs (excluding depreciation) 70,000 50000 60,000EDITDA 180,000 270,000 180,000Depreciation 15,000 20,000 18,000EBIT 165,000 250,000 162,000Interest Expense 100,000 100000 100,000EBT 65,000 150,000 62,000Taxes 19,500 25,000 5,000Net Income 45,500 125,000 57,000Common Dividends 4,550 6000 3000Addition to Retained Earnings 40,950 119,000 54,000Balance SheetAssets 2018 2017 2020 2019Cash and Cash Equivalents 40,000 30,000 66,000 128,000Short term Investments 4,500 8,500 10,500 9000Accounts Receivable 166,000 190,000 164,000 242,950Inventories 80,000 70,000 100,000 80,000Total current assets 290,500 298,500 340,500 459,950Net Fixed Assets 115,000 90,000 115,000 90,000Total Assets 405,500 388,500 455,500 549,950Liabilities and Equity 2017 2016 2020 2,019Accounts Payable 17,000 14,500 17,000 12,500Accruals 18,500 14,000 18,500 13,000Notes Payable 11,000 4,000 11,000 4,000Total Current Liabilities 46,500 32,500 46,500 29,500Long term debt 133,000 186,950 133,000 186,950Total Liabilities 179,500 219,450 179,500 216,450Common Stock 146,000 130,000 126,000 132,000Retained Earnings 80,000 39,050 150,000 201,000Total Common Equity 226,000 169,050 276,000 333,000Total Liabilities and Equity 405,500 388,500 455,500 549,450a. Find all of the ratios below:2020 IALiquidity Ratios 3.5Current Ratio 2Quick RatioAsset Management RatiosInventory Turnover 25.39Days Sales Outstanding 55.08Total Assets Turnover 2.7Debt RatiosDebt Ratio 35%TIE Ratio 6.5Debt to Equity RatioProfitability RatiosProfit Margin 12%Return on Assets 13.50%Return on Equity 15%Market RatiosEPS N/AP/E ratio 14.78b. Write a synopsis on how this company compares with theindustry in each section of ratios.c. Perform a DuPont analysis for XYZ Inc.ROE = PM * TA Turnover * Equity Multiplier20202019d. Explain the results in part c.