1) Company XYZ
Cash $10000 Accounts Payable $17000
Marketable Securities 20000 Notes Payable 15000
Accounts Receivable 35000 Accrued Wages 10000
Inventory 30000 Bank Loan 45000
Net Plant & Equipment $105000 Total Liabilities $87000
Common Stock $75000
Retained Earnings 38000
Total Owners Equity $113000
Total Assets $200000 Total Liabilities & Owners Equity $200000
Sales during the year were $500000.
Net Income for the year was $40000.
Market Price per share is currently $30.00.
Interest expense for the year was $5000.
Earnings before taxes were $60000.
Shares of Common Stock 10000
Based on the above information calculate and interpret the following ratios:
3)Days Sales Outstanding
4)Total Asset Turnover
5)Total Debt Ratio
9)Fixed Asset Turnover
10) Price Earnings Ratio
11) Market to Book Value
12) Based on the ratio analysis you just conducted how good of financial shape do think this firm is in? Why?
13) When will a firms ROA and ROE be equal to one another?