Question: Based on the data below (Balance Sheet and Income Statement), please calculate the following ratios: A. Create a common size balance sheet and income statement.

Based on the data below (Balance Sheet and Income Statement), please calculate the following ratios:

A. Create a common size balance sheet and income statement.

B. Find the following:

  1. ROE
  2. ROA
  3. Gross profit margin
  4. Operating Profit Margin
  5. Net Profit Margin
  6. Current Ratio
  7. Quick Ratio
  8. Inventory turnover
  9. Accounts receivable Turnover
  10. Total Asset Turnover
  11. Debt Ratio
  12. Debt to Equity Ratio

Blockbuster Inc.

Balance Sheet for year-ended Dec 31 ($000s)

ASSETSYear 1Year 2Cash 194,200200,200Accounts Receivables185,800150,000Inventory242,200202,900Other Current Assets177,300163,300Total Current Assets799,500716,400Fixed Assets Long Term Investments214,100159,500PP&E1,079,400909,000Goodwill6,455,9005,967,500Total Fixed Assets7,749,4007,036,000Total Assets8,548,9007,752,400LIABILITIES AND SHAREHOLDERS EQUITY Accounts Payable1,090,4001,087,400Short-term Debt32,800181,400Total Current Liabilities1,123,2001,268,800Long-term Debt1,417,300734,900Total Liabilities2,540,5002,003,700Shareholders Equity Common Stock6,095,2006,075,800Retained Earnings-86,800-327,100Total Stockholder Equity6,008,4005,748,700Total Liabilities and Shareholders Equity8,548,9007,752,400

Blockbuster Inc.

Income Statement for year-ended Dec 31 ($000s)

Year 1Year 2Sales4,969,1005,157,600COGS2,036,0002,420,700SG&A2,390,6002,532,400Depreciation279,000246,600Amortization of Intangibles180,100176,100Operating Income (Loss)83,400-218,200Interest Expense116,50078,200Income Before Tax-33,100-296,400Income Tax Expense45,400-56,100Net Income -78,500-240,300

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