Modern Appliances Corporation has reported its financial results for the year ended December 31, 2013.

Modern Appliances Corporation

Income Statement for the Fiscal

Year Ended December 31, 2013

Sales ........................................................... $5,398,412,000

Cost of goods sold ............................................ 3,432,925,255

Gross profit margin .......................................... $1,965,486,745

Selling, general, and admin. Expenses ...................... 1,036,311,231

Depreciation ....................................................... 299,928,155

Operating income .............................................. $ 629,247,359

Interest expense ................................................... 35,826,000

EBT .............................................................. $ 593,421,359

Income taxes ...................................................... 163,104,554

Net earnings .................................................... $ 430,316,805

Modern Appliances Corporation

Balance Sheet as of December 31, 2013

Using the information from the financial statements, complete a comprehensive ratio analysis for Modern Appliances Corporation.
a. Calculate these liquidity ratios: current and quick ratios.
b. Calculate these efficiency ratios: inventory turnover, accounts receivable turnover, DSO.
c. Calculate these asset turnover ratios: total asset turnover, fixed asset turnover.
d. Calculate these leverage ratios: total debt ratio, debt-to-equity ratio, equity multiplier.
e. Calculate these coverage ratios: times interest earned, cash coverage.
f. Calculate these profitability ratios: gross profit margin, net profit margin, ROA, ROE.
g. Use the DuPont identity, and after calculating the component ratios, compute the ROE?

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Assets: Cash and cash equivalents Accounts receivable Inventories Other current assets Liabilities and Equity: 117,109,865 466,937,985 994,289,383 S 514,412,159Short-temborrowing 1,046,612,233Trade accountspayable Other current liabilities 981,870,990 313,621,610 $2,856,516,992 Total current assets Net fixed assets Goodwill Other assets Totalassets $1,578,337,233 1,200,691,565 397,407,352 1,218,207,588 $4,394,643,738 Total curent liabilities 754,660,275Long-term debt 118,407,710 Common stock 665,058,761 Retained eamings $4,394,643,738 Totalliabilities and equity