Question: a) Use the preceding financial statements to complete the table below. Assume that the industry averages given in the table are applicable for both 2018
a) Use the preceding financial statements to complete the table below. Assume that the industry averages given in the table are applicable for both 2018 and 2019.
Number of shares outstanding - 3000 / Price per share - $35
| Occidental Industries Ratio Analysis
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| Industry | Actual | Actual |
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| Average | 2018 | 2019 |
| Current ratio |
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| 1.8 | 1.84 | ? |
| Quick ratio |
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| 0.7 | 0.78 | ? |
| Inventory turnover |
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| 2.5 | 2.59 | ? |
| Average collection period (days) |
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| 37.5 | 36.5 | ? |
| Debt ratio |
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| 65.0% | 67.0% | ? |
| Times interest earned |
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| 3.8 | 4.0 | ? |
| Gross profit margin |
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| 38% | 40% | ? |
| Net profit margin |
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| 3.5% | 3.6% | ? |
| Return on total assets |
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| 4.0% | 4.0% | ? |
| Return on common equity |
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| 9.5% | 8.0% | ? |
| Market/book ratio |
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| 1.1 | 1.2 | ? |
b) Analyze Occidental Industries financial condition as it is related to (1) liquidity, (2) activity, (3) debt, (4) profitability, and (5) market. Summarize the companys overall financial condition (improved or deteriorated?)
Occidental Industries Income Statement for the Year Ended December 31, 2019 200,000 Subtract 106.000 106,000 from 94,000 200,000 Sales revenue Less: Cost of goods sold Gross profits Less: Operating expenses Selling expense General and administrative expenses Lease expen Depreciation expense Total operating expense Operating profits Less: Interest expense Net profits before taxes Less: Taxes Net profits after taxes $ 16,000 10,000 1,000 10.000 37,000 Add all operating expenses 57,000 6.100 50,900 4,360 46,540 Occidendatal Industries Balance Sheet December 31, 2019 Assets Cash 43,500 Marketable securities 1,000 Accounts receivable 25,000 Inventories 45,500 Total current assets 115,000 Land 26,000 Buildings and equipment 120,000 Less: Accumulated depreciation 38,000 Net fixed assets 108,000 Total assets 223,000 2002 Liabilities and Stockholders' Equity Accounts payable Notes payable Total current liabilities Long-term debt Common stock Retained earnings Total liabilities and stockholders' equity 22,000 90,000 112,000 22,950 61.500 26,550 223,000 42 43 44 The firm's 3.000 outstanding shares of common stock closed 2019 at a price of $35 per share. Earnings per Share - Not Brott att ta TeX
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