15. Below you will find a Balance Sheet, Income Statement, Company 5-year average ratio calculations for...

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15. Below you will find a Balance Sheet, Income Statement, Company 5-year average ratio calculations for ABC, Inc. and the Peer Group comparison. Please read each question thoroughly. Hapu b. a. Calculate the ratios in the chart below. Show your work to receive partial credit. Use 365 days for the CCC calculations. (2 points ea. total 26 points) Based on these numbers, what do you see as the main problem with this company. Obviously, the ROE is lower, but what is causing this to be the case. Be sure to explain any specific ratios which led you to your conclusion and what steps you can take to fix the problem. (14 points) Prior year (beginning) net working capital was $175,100 and prior year (beginning) fixed assets were $550,600. Use this information to calculate cash flow from assets. Hint: this is the first of the two ways we learned to calculate cash flow from assets. I have given you the beginning numbers, so you don't have to calculate them. (8 points) C. d. Analyze your cash flow from asset calculation. Identify what the components mean and whether you feel management is making the right decision considering the ratios analysis you conducted above. Income Statement Sales Cost of Goods Sold Gross Profit Selling & Admin. Exp. Depreciation EBIT Interest Expense Taxable Income Taxes Net Income $2,218,500 Cash Balance Sheet Accounts $1,012,400 Receivable $1,206,100 Inventory $806,000 Current Assets $100,000 Fixed Assets $300,100 $78,000 $222,100 $69,000 Total Assets $153,100 $144,100 Accounts Payable Notes Payable $169,800 $145,000 Current Liabilities Long-Term Debt $458,900 $575,300 Total Liabilities Par & APIC Common Stock Retained Earnings Total Equity Total Liabilities & $1,034,200 Equity (6 points) $160,000 $35,500 $195,500 $200,000 $395,500 $350,000 $288,700 $638,700 $1,034,200 15. Below you will find a Balance Sheet, Income Statement, Company 5-year average ratio calculations for ABC, Inc. and the Peer Group comparison. Please read each question thoroughly. Hapu b. a. Calculate the ratios in the chart below. Show your work to receive partial credit. Use 365 days for the CCC calculations. (2 points ea. total 26 points) Based on these numbers, what do you see as the main problem with this company. Obviously, the ROE is lower, but what is causing this to be the case. Be sure to explain any specific ratios which led you to your conclusion and what steps you can take to fix the problem. (14 points) Prior year (beginning) net working capital was $175,100 and prior year (beginning) fixed assets were $550,600. Use this information to calculate cash flow from assets. Hint: this is the first of the two ways we learned to calculate cash flow from assets. I have given you the beginning numbers, so you don't have to calculate them. (8 points) C. d. Analyze your cash flow from asset calculation. Identify what the components mean and whether you feel management is making the right decision considering the ratios analysis you conducted above. Income Statement Sales Cost of Goods Sold Gross Profit Selling & Admin. Exp. Depreciation EBIT Interest Expense Taxable Income Taxes Net Income $2,218,500 Cash Balance Sheet Accounts $1,012,400 Receivable $1,206,100 Inventory $806,000 Current Assets $100,000 Fixed Assets $300,100 $78,000 $222,100 $69,000 Total Assets $153,100 $144,100 Accounts Payable Notes Payable $169,800 $145,000 Current Liabilities Long-Term Debt $458,900 $575,300 Total Liabilities Par & APIC Common Stock Retained Earnings Total Equity Total Liabilities & $1,034,200 Equity (6 points) $160,000 $35,500 $195,500 $200,000 $395,500 $350,000 $288,700 $638,700 $1,034,200

Answer rating: 100% (QA)

To calculate the ratios we need to use the given financial statement information Here are the calculations for each ratio a Ratio Calculations 1 Current Ratio Current Ratio Current Assets Current Liab... View the full answer