Being able to discuss and interpret financial statements and forecast future performance are critical skills for financial managers. This discussion will allow you to use some of these skills with your peers.

Reference the sample financial statement found on page 354 of your text. Just summarize what you can learn from the statement, and explain how you reached you conclusion.

2012 Financial Statement of Hatfield listed below.

Financial Statement & Other Data (Million, Except Per Share Data).

Please Summarize what you can learn from the statement, and explain how you reached your conclusions.

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Balance Sheet, Hatfield, 12/31/2012. Cash and securities Accounts receivable Inventories Total current assets Net fixed assets Total Assets Accounts pay + accruals Notes Payable Income Statement, Hatfield, 2012 $20 290 390 $700 500 $1,200 $100 80 Sales Total operating cost EBIT Interest EBT Taxes (40%) Net Income Dividends Add, to retain, Earnings $2,000 1,900 $100 60 $40 16 $24 $9 $15 Total current liabilities Long-term debt Total liabilities Common Stock Retained earnings Total common equity Total liab, and Equity $180 520 $700 300 200 $500 $1,200 Shares outstanding EPS DPS Year-end Stock price 10 $2.40 $0.90 $24.00 Selected Ratios & Other Data, 2012 Expected growth in Sales: (PRO): Sales, 2012 (S): assets: Profit margin (M): Assets/Sales (A.* /S.): Payout ratio Equity multiplier (Assets / Equity): Total liability / Total Hatfield Industry 2,000 15.0% 1.20% 60.0% 37.5% 2.40 58.3% 2,000 15.0% 2.74% 50.0% 35.3% 2.13 53.0% g^S.): Payables + Accruals) / Sales (L.* /S.): Sales: Sales: Sales: Increase in Sales (AS = Sales: Operating cost / Cash/Sales: Receivables / Inventories / Fixed assets/ $300 5.0% 95.0% 1.0% 14.5% 19.5% 25.0% $300 4.0% 93.0% 1.0% 11.0% 15.0% 23.0% rate: debt: (P/E): Tax Interest rate of all Price / Earning ROE (Net income / Common equity): 40.0% 10.00% 10.0 4.80% Note: Hatfield was operating at full capacity in 2012. 40.0% 9.5% 12.0 11.64% Please Summarize what you can learn from the statement, and explain how you reached your conclusions. Balance Sheet, Hatfield, 12/31/2012. Cash and securities Accounts receivable Inventories Total current assets Net fixed assets Total Assets Accounts pay + accruals Notes Payable Income Statement, Hatfield, 2012 $20 290 390 $700 500 $1,200 $100 80 Sales Total operating cost EBIT Interest EBT Taxes (40%) Net Income Dividends Add, to retain, Earnings $2,000 1,900 $100 60 $40 16 $24 $9 $15 Total current liabilities Long-term debt Total liabilities Common Stock Retained earnings Total common equity Total liab, and Equity $180 520 $700 300 200 $500 $1,200 Shares outstanding EPS DPS Year-end Stock price 10 $2.40 $0.90 $24.00 Selected Ratios & Other Data, 2012 Expected growth in Sales: (PRO): Sales, 2012 (S): assets: Profit margin (M): Assets/Sales (A.* /S.): Payout ratio Equity multiplier (Assets / Equity): Total liability / Total Hatfield Industry 2,000 15.0% 1.20% 60.0% 37.5% 2.40 58.3% 2,000 15.0% 2.74% 50.0% 35.3% 2.13 53.0% g^S.): Payables + Accruals) / Sales (L.* /S.): Sales: Sales: Sales: Increase in Sales (AS = Sales: Operating cost / Cash/Sales: Receivables / Inventories / Fixed assets/ $300 5.0% 95.0% 1.0% 14.5% 19.5% 25.0% $300 4.0% 93.0% 1.0% 11.0% 15.0% 23.0% rate: debt: (P/E): Tax Interest rate of all Price / Earning ROE (Net income / Common equity): 40.0% 10.00% 10.0 4.80% Note: Hatfield was operating at full capacity in 2012. 40.0% 9.5% 12.0 11.64% Please Summarize what you can learn from the statement, and explain how you reached your conclusions.

Answer rating: 100% (QA)

Activity Ratios Activity ratios are used to measure how efficiently a company utilizes its assets The ratios provide investors with an idea of the overall operational performance of a firm As you can ... View the full answer