Perform ratio analysis, and discuss change in financial position and operating results. (LO5) PSB12.3 The following...
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Perform ratio analysis, and discuss change in financial position and operating results. (LO5) PSB12.3 The following are condensed balance sheet and income statement data for Cross Country Couriers Ltd. Cash Receivables (net) Other current assets Office equipment (net) Motor vehicles (net) Current liabilities Long-term borrowings Share capital, $1 each Retained earnings CROSS COUNTRY COURIERS LTD Comparative Balance Sheet as at 31 December 2010 2010 $ 40.000 120000 80000 90000 603 000 $933 000 $ 98000 250000 400 000 185 000 $933 000 Net revenue Delivery expenses Gross profit on courier services Operating expenses (including income taxes) Profit for the period 2009 $ 24000 45 000 75.000 70 000 400 000 $614000 CROSS COUNTRY COURIERS LTD Income Statement for the year ended 31 December 2010 $ 75.000 75 000 400 000 64000 $614000 (a) Calculate the following ratios for 2009 and 2010. (5) Price-earnings. (6) Dividend payout ratio. (7) Debt to total assets. 2010 $760 000 (420 000) 340.000 (194000) $146000 2008 $ 20000 48000 62000 50 000 360 000 $540000 $ 70000 65.000 400000 5000 $540000 2009 $700 000 (40000) 300000 (225000 75.000 Additional information: 1. The market price of Cross Country Couriers' shares was $1.20, $1.33, and $2.78 for 2008, 2009, and 2010, respectively. 2. You must calculate dividends paid. All dividends were paid in cash. Required (1) Profit margin (2) Gross profit rate. (3) Asset turnover. (4) Earnings per share. (b) Based on the ratios calculated, discuss briefly the improvement or lack thereof in the financial position and operating results from 2009 to 2010 of Cross Country Couriers. Perform ratio analysis, and discuss change in financial position and operating results. (LO5) PSB12.3 The following are condensed balance sheet and income statement data for Cross Country Couriers Ltd. Cash Receivables (net) Other current assets Office equipment (net) Motor vehicles (net) Current liabilities Long-term borrowings Share capital, $1 each Retained earnings CROSS COUNTRY COURIERS LTD Comparative Balance Sheet as at 31 December 2010 2010 $ 40.000 120000 80000 90000 603 000 $933 000 $ 98000 250000 400 000 185 000 $933 000 Net revenue Delivery expenses Gross profit on courier services Operating expenses (including income taxes) Profit for the period 2009 $ 24000 45 000 75.000 70 000 400 000 $614000 CROSS COUNTRY COURIERS LTD Income Statement for the year ended 31 December 2010 $ 75.000 75 000 400 000 64000 $614000 (a) Calculate the following ratios for 2009 and 2010. (5) Price-earnings. (6) Dividend payout ratio. (7) Debt to total assets. 2010 $760 000 (420 000) 340.000 (194000) $146000 2008 $ 20000 48000 62000 50 000 360 000 $540000 $ 70000 65.000 400000 5000 $540000 2009 $700 000 (40000) 300000 (225000 75.000 Additional information: 1. The market price of Cross Country Couriers' shares was $1.20, $1.33, and $2.78 for 2008, 2009, and 2010, respectively. 2. You must calculate dividends paid. All dividends were paid in cash. Required (1) Profit margin (2) Gross profit rate. (3) Asset turnover. (4) Earnings per share. (b) Based on the ratios calculated, discuss briefly the improvement or lack thereof in the financial position and operating results from 2009 to 2010 of Cross Country Couriers.
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Answer rating: 100% (QA)
to calculate the following ratios for 2009 and 2010 1 Profit margin 2009 575000 194000 614000 ... View the full answer
Related Book For
Financial Accounting Tools for Business Decision Making
ISBN: 978-1119368458
7th Canadian edition
Authors: Paul D. Kimmel, Jerry J. Weygandt, Donald E. Kieso, Barbara Trenholm, Wayne Irvine
Posted Date:
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