Given the following financial statements historical ratios, and industry averages, calculate Sterling Companys financial ratios for the
Question:
Given the following financial statements historical ratios, and industry averages, calculate Sterling Company’s financial ratios for the most recent year. (Assume a 365-day year.)
Analyze its overall financial situation from both a cross-sectional and a time-series viewpoint. Break your analysis into evaluations of the firm’s liquidity, activity, debt, profitability, and market.
Transcribed Image Text:
Sterling Company Income Statement for the Year Ended December 31, 2015 Sales revenue $ 10,000,000 Less: Cost of goods sold 7,500,000 Gross profits $ 2,500,000 Less: Operating expenses Selling expense General and administrative expenses Lease expense Depreciation expense Total operating expense Operating profits Less: Interest expense Net profits before taxes Less: Taxes (rate = 40%) Net profits after taxes Less: Preferred stock dividends Earnings available for common stockholders Earnings per share (EPS) $ 300,000 650,000 50,000 200,000 $ 1,200,000 1,300,000 200,000 $ 1,100,000 440,000 660,000 50,000 610,000 $3.05 $ $
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To calculate Sterling Companys financial ratios for the most recent year 2015 we can use the information provided in the income statement and balance sheet images you provided Lets calculate some key ...View the full answer
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Related Book For
Principles Of Managerial Finance
ISBN: 9781292018201
14th Global Edition
Authors: Lawrence J. Gitman, Chad J. Zutter
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