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The Vanguard Group, Inc. has compiled the following financial statements and previous years' comparison and industry average ratios for the year end review. Using the data presented, compute the ratios of each category and then interpret your answers in terms of trend and comparison to the industry standard. Sales Reveme Less: Cost of Sales Gross Profits Less: Operating Expenses Income Statement For the Year Ended December 31, 2011 $3,696,000 -2,997,456 698,544 Selling Expense General and Admin Depreciation Expense Total Operating Expense Operating Profits Less Interest Expense Net Profits before taxes Less: Taxes (35%) Net Profits after taxes Additional Information Current Price per Share Current # of shares outstanding 276,320 179,520 52,800 508,640 189.904 -34,320 155,584 -54,454 101,130 S7.50 1,000,000 ASSETS Cash Accounts Receivable Inventories Total Current Assets Balance Sheet 31-Dec-11 LIABILITIES 249,300 Accounts Payable 622,120 Notes Payable 637,860 Accruals 1,509,280 Total Current Liabilities Long Term Debt 1,300,000 Total Liabilities -190,000 Common Stock 1,110,000 Retained Earnings Total Equity TOTAL LIAB. AND $2,619,280 EQUITY Gross Fixed Assets Accumulated Depreciation Net Fixed Assets 233,620 464,620 228,360 926,600 517,180 1,443,780 637,500 538,000 1,175,500 $2,619,280 TOTAL ASSETS 2011 Vanguard Group, Inc. Historical and Industry Average Ratios 2009 2010 1.60 1.70 0.90 1.00 0.28 0.30 Industry 1.60 0.90 0.28 5.00 8.40 50 Days 40 Days 6.00 40 Days 3.40 1.50 3.40 1.50 3.40 1.75 Liquidity Ratios Current Ratio Quick Ratio Cash Ratio Asset Mgt. Ratios Inventory Turnover Days Sales Outstanding Fixed Asset Tumover Total Asset Turnover Debt Mgt. Ratios Debt Ratio Debt to Equity Ratio Times Interest Earned Profitability Ratios Profit Marin Retan on Assets Return on Equity Market Value Ratios PE Ratio Market to Book Ratio 0.60 1.50 2.50 0.56 1.27 3.50 0.50 1.00 4.00 0.02 0.03 0.08 0.02 0.04 0.08 0.03 0.05 0.11 16.00 13.50 1.00 14.00 1.10 1.40 Calculate its Quick Ratio. 1) 1.63 2) 0.27 3) 0.94 4) 0.61 Question 6 (1 point) Calculate its Inventory Turnover Ratio. 1) 5.79 2) 5.12 3) 4.70 4) 5.61 5) 5.33 Calculate its Days Sales Outstanding. 1) 62.99 2) 55.56 3) 61.44 4) 70.63 Question 8 (1 point) Calculate its Fixed Asset Turnover. 1) 1.27 2) 1.41 3) 3.33 4) 1.61 5) 1.63 Calculate its Total Asset Turnover. 1) 3.61 2) 3.33 3) 1.63 4) 1.41 5) 3.27 Question 10 (1 point) Calculate its Debt Ratio. 1) 3.33 2) 3.61 3) 3.30 4) 0.55

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