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Use the following financial statements of Heifer Sports Inc. in Table 14.14 to find Heifers: PLEASE SHHOW WORK
a. Inventory turnover ratio in 2015.
b. Debt/equity ratio in 2015.
c. Average collection period.
d. Asset turnover ratio.
e. Interest coverage ratio.
f. Operating profit margin.
g. Return on equity.
h. Cash ratio.
i. Current ratio.
j. Use the DuPont equation to decompose ROE.
| Income statement | 2016 | | |
| | | | |
| Sales | $5,500,000 | | |
| Coast of goods sold | 2,850,000 | | |
| Depreciation | 280,000 | | |
| Selling & admin expenses | 1,500,000 | | |
| EBT | 870,000 | | |
| Interest expense | 130,000 | | |
| Taxable income | 740,000 | | |
| Taxes | 330,000 | | |
| | | | |
| Net income | 410,000 | | |
| Balance sheet year end | 2015 | 2014 |
| | | |
| assets | | |
| cash | 50,000 | 40,00 |
| Accounts receivable | 660,000 | 690,000 |
| inventory | 490,000 | 480,000 |
| Total current assets | 1,200,000 | 1,210,000 |
| Fixed assets | 3,100,000 | 2,800,000 |
| Total assets | 4,300,000 | 4,010,000 |
| | | |
| Liability and shareholder equity | | |
| Accounts payable | 340,000 | 450,000 |
| Short term debt | 480,000 | 550,000 |
| Total current liabilities | 820,000 | 1,000,000 |
| Long term bonds | 2,520,000 | 2,200,000 |
| Total liabilities | 3,340,000 | 3,200,000 |
| Common stock | 310,000 | 310,000 |
| Retained earnings | 650,000 | 650,000 |
| Total shareholder equity | 960,000 | 810,000 |
| Total liabilities and share holder equity | 4,300,000 | 4,010,000 |
| | | |
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