11. (20 points) Given the balance sheet and income state for Simmons Maintenance Company, compute the...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
11. (20 points) Given the balance sheet and income state for Simmons Maintenance Company, compute the ratios that are also shown for the industry average. The "right answer" refers to the question of whether a particular ratio for Simmons is better or worse than the industry average. oitia biup :0. 09 CET ( SIMMONS MAINTENANCE COMPANY USTUS (CI Balance Sheet Assets by so eveb 00 Liabilities foll ms asd.o Inventory Cash Accts. Receivable Current Assets $ 15,000 Accounts Payable W .000,000,88 19 $ 21,000 22,000 Notes Payable 000,082 (A 20,000 30,000 Accrued Expenses 5.000 000.0018 (E- 67,000 Current Liabilities 46,000 Net Fixed Assets 000.0022 ( 73,000 Long-term Debt Stockholders' Equity 30,000 000.082 (C 64,000 Total Assets $140,000 Total Liabilities & Stockholders' Equity $140,000 Sales (80% credit) Less: Cost of Goods Sold Gross Profit Selling and Administrative Expense Rent Expense (Lease) EBIT Interest Expense Earnings before taxes Taxes (@ 25%) Net Income Common shares outstanding EPS Ratio Profit margin Return on assets Return on equity Receivables turnover Avg. collection period Inventory turnover Fixed asset turnover Total asset turnover Current ratio Quick ratio Debt to total assets Times interest earned 19226 boxit a'mmit odT .000.0002 20.8 (A Income Statement x0.51 (8 $120,000 45,000 75,000 20,000 8,000 28,000 47,000 5,000 42,000 10,500 $ 31,500 15,000 $ 2.10 Ratios for Simmons Industry Better (B) or Average Worse (W) 17.5% 20.8% 35% 4.4x 68.0 days 3.5x 2.4x .76x 1.28 .85 .45 12.0x 3.6x Fixed charge coverage Overall, how is this company doing in relation to the industry and explain your answer. 11. (20 points) Given the balance sheet and income state for Simmons Maintenance Company, compute the ratios that are also shown for the industry average. The "right answer" refers to the question of whether a particular ratio for Simmons is better or worse than the industry average. oitia biup :0. 09 CET ( SIMMONS MAINTENANCE COMPANY USTUS (CI Balance Sheet Assets by so eveb 00 Liabilities foll ms asd.o Inventory Cash Accts. Receivable Current Assets $ 15,000 Accounts Payable W .000,000,88 19 $ 21,000 22,000 Notes Payable 000,082 (A 20,000 30,000 Accrued Expenses 5.000 000.0018 (E- 67,000 Current Liabilities 46,000 Net Fixed Assets 000.0022 ( 73,000 Long-term Debt Stockholders' Equity 30,000 000.082 (C 64,000 Total Assets $140,000 Total Liabilities & Stockholders' Equity $140,000 Sales (80% credit) Less: Cost of Goods Sold Gross Profit Selling and Administrative Expense Rent Expense (Lease) EBIT Interest Expense Earnings before taxes Taxes (@ 25%) Net Income Common shares outstanding EPS Ratio Profit margin Return on assets Return on equity Receivables turnover Avg. collection period Inventory turnover Fixed asset turnover Total asset turnover Current ratio Quick ratio Debt to total assets Times interest earned 19226 boxit a'mmit odT .000.0002 20.8 (A Income Statement x0.51 (8 $120,000 45,000 75,000 20,000 8,000 28,000 47,000 5,000 42,000 10,500 $ 31,500 15,000 $ 2.10 Ratios for Simmons Industry Better (B) or Average Worse (W) 17.5% 20.8% 35% 4.4x 68.0 days 3.5x 2.4x .76x 1.28 .85 .45 12.0x 3.6x Fixed charge coverage Overall, how is this company doing in relation to the industry and explain your answer.
Expert Answer:
Posted Date:
Students also viewed these finance questions
-
Suppose the firm has a value of $122,062.5 when it is all equity financed. Now assume the firm issues $64,000 of debt paying interest of 5% per year and uses the proceeds to retire equity. The debt...
-
1. Given the balance sheet and income state for Simmons Maintenance Company, compute the ratios that are also shown for the industry average. The "right answer" refers to the question of whether a...
-
I need help on this read from bottom to top. Image transcription text 7"} The second ?nancial statement to prepare is the statement of retained earnings. To determine the ending balance of...
-
In using the bolt cutter shown, a worker applies two 300-N forces to the handles. Determine the magnitude of the forces exerted by the cutter on the bolt. 300 N 12 mm 24 mm E 24 mm 460 mm 96 mm 300 N...
-
(a) Generate a correlation matrix for your predictors. Round the results to three decimal places. (b) Based on the correlation matrix, is collinearity a problem? What rules of thumb (if any) are you...
-
Repeat Prob. 7.108 above if the ball is instead struck with underspin, that is, with the front of the ball rotating upward.
-
Give two advantages of the information systems auditor performing a stafffunction role within an organization and two advantages of their performing a line-function role.
-
The following financial information was taken from the records of Frederickson and Peffer. a. Reconstruct the entry that recorded the sale of equipment during 2011.b. How much equipment was purchased...
-
:41 CRUZ, INCORPORATED Comparative Balance Sheets At December 31 2021 2020 Assets Cash Accounts receivable, net Prepaid expenses $ 99,300 42,600 $ 24,900 52,800 Total assets Inventory Total current...
-
A graph of the x component of the electric field as a function of x in a region of space is shown in the figure below. The scale of the vertical axis is set by E potential at the origin is 12 V. Exs...
-
6. What does it mean to have a participative budgeting process? 7. What does it mean to say that the key to the entire budget (e.g., the sales budget) is the forecast of operating activity? 8. What...
-
Harvey's Junk Jewelry started business January 1, 2011, and uses the LIFO retail method to estimate ending inventory. Listed below is data accumulated for the year ended December 31, 2021: Beginning...
-
Provide a literature review for the below. Statement of the Problem Ciboney Resorts employs approximately fifteen hundred employees at its luxury resort in the beautiful island of Trinidad. The staff...
-
2. Calculate the following (1) 12mod5 (2) 2 mod 5 (3) 15*25 mod 3 (4) 25/4 mod 3
-
Find the characteristic polynomial of the matrix p(x) = -2 40 A = 0 -4 3 -2 -5 0
-
A. Taxpayer incurred acquisition debt of $800,000 June 30, 2015 on Loan #1 in the form of an interest only 3% first mortgage on taxpayer's primary residence, and B. A HELOC (2 nd mortgage ) on June...
-
A supermarket chain is interested in exploring the relationship between the sales of its store-brand canned vegetables (y), the amount spent on promotion of the vegetables in local newspapers (x1)...
-
Even if the system to be evaluated is operational, why might auditors decide to use a workload model to evaluate system efficiency rather than the real workload?
-
The nature of the resource demands generated via the workload model must be appropriate to the system or the component under study. Briefly explain.
-
What is meant by the representativeness of a workload model? How can the representativeness of a workload model be measured? In practice, why is it sometimes difficult to evaluate the...
Study smarter with the SolutionInn App