Your task is to work backwards, using the ratios, to fill in the missing information on the
Question:
Cracker Barrel Foods Corp | ||
Income Statement | ||
January 1 - December 31st, 2020 | ||
Revenues | $ 6,227,844 | |
Cost of Goods Sold | $ 3,844,576 | |
Expenses | $ 1,298,668 | |
Depreciation | $ 362,325 | |
EBIT | $ 722,275 | |
Interest Expense | $ | |
Taxable Income | $ | |
Taxes @ 30% | $ | |
Net Income | $ |
Cracker Barrel Foods Corp | |||
Balance Sheet | |||
As of December 31st, 2020 | |||
Current Assets | 2020 | Current Liabilities | 2020 |
Cash | $ 10,445 | A/P | $ 330,000 |
A/R | $ | N/P | $ 250,000 |
Inventory | $ | Other Current Liab | $ 1,250,000 |
Other Current Assets | $ 812,000 | Total Current Liab | $ |
Total Current Assets | $ | Long Term Debt | $ 1,389,615 |
Net Fixed Assets | $ 3,129,754 | Common Stock | $ 1,761,044 |
Retained earnings | $ | ||
Total Assets | $ | Total Liab. & O.E. | $ |
Cracker Barrel Foods Corp | |
Financial Ratios | |
2020 | |
Liquidity Ratios | Cracker Barrel |
1. Current Ratio | 1.330 |
2. Quick Ratio | 1.117 |
3. Cash Ratio | 0.004 |
Solvency Ratios | |
4. Total Debt Ratio | 0.58 |
5. Debt/Equity Ratio | 1.37 |
6. Equity Multiplier | 2.37 |
Asset Management Ratios | |
7. Times Interest Earned | 4.82 |
8. Cash Coverage (EBITDA) Ratio | 7.23 |
9. Inventory Turnover Ratio | 9.88 |
10. Days Sales in Inventory | 36.93 |
11. Receivables Turnover Ratio | 5.10 |
12. Days Sales in A/R (Average Collection Period) | 71.61 |
13. NWC Turnover | 10.33 |
14. Fixed Asset Turnover | 1.99 |
15. Total Asset Turnover | 1.12 |
Profitability Ratios | |
16. Profit Margin | 6.4% |
17. Return on Assets (ROA) | 7.2% |
18. Return on Equity (ROE) | 17.1% |
Questions related to Ratios and the Financial Statements
1. What is the correct value for Interest Expense?
2. What is the correct value for Net Income?
3. What is the correct value for Taxable Income?
Accounting Principles Part 3
ISBN: 978-1118306802
6th Canadian edition Volume 1
Authors: Jerry J. Weygandt, Donald E. Kieso, Paul D. Kimmel, Barbara Trenholm, Valerie Kinnear, Joan E. Barlow