Data for Campsey Computer Company and its industry averages follow. a. Calculate the indicated ratios for Campsey.

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Data for Campsey Computer Company and its industry averages follow.

a. Calculate the indicated ratios for Campsey.

b. Construct the DuPont equation for both Campsey and the industry.

c. Outline Campsey's strengths and weaknesses as revealed by your analysis.

d. Suppose Campsey had doubled its sales as well as its inventories, accounts receivable, and common equity during 2012. How would that information affect the validity of your ratio analysis?

Data for Campsey Computer Company and its industry averages follow.
a.

Campsey Computer Company:
Income Statement for Year Ended December 31, 2012
Sales........................................................................$ 1,607,500
Cost of goods sold........................................................( 1,353,000)
Gross profit..................................................................$ 254,500
Fixed operating expenses except depreciation.........................( 143,000)
Earnings before interest, taxes, depreciation,
and amortization (EBITDA)..............................................$ 111,500
Depreciation..................................................................( 41,500)
Earnings before interest and taxes (EBIT)................................$ 70,000
Interest........................................................................( 24,500)
Earnings before taxes (EBT)...............................................$ 45,500
Taxes (40%).................................................................( 18,200)
Net income....................................................................$ 27,300

Data for Campsey Computer Company and its industry averages follow.
a.
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Related Book For  book-img-for-question

Principles of Finance

ISBN: 978-1111527365

5th edition

Authors: Scott Besley, Eugene F. Brigham

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