Question: can you please help me solve the attached question! Pamplin Inc. Balance Sheet at 12/31/2014 and 12/31/2015 ASSETS 2014 2015 Cash S 197 $ 147




can you please help me solve the attached question!




Pamplin Inc. Balance Sheet at 12/31/2014 and 12/31/2015 ASSETS 2014 2015 Cash S 197 $ 147 Accounts receivable 445 427 Inventory 552 622 Current assets 5 1,194 5 1,196 Plant and equipment 5 2,202 5 2,601 Less accumulated depreciation (1.003) (1.204) Net plant and equipment 5 1,199 5 1,397 Total assets $ 2.393 5 2.593 LIABILITIES AND OWNERS' EQUITY Accounts payable 199 $ 149 Notes payable-current (9.00% interest) 0 152 Current liabilities in 199 S 301 Bonds (8.33% interest) 603 603 Total debt 802 S 904 Owners' equity Common stock $ 305 $ 305 Paid-in capital 602 602 Retained earnings 654 782 Total owners' equity 5 1,591 5 1.609 Total liabilities and owners' equity $ 2.393 5 2.593Industry Norm 2014 2015 Current ratio 5.00 Acid-test (quick) ratio 3.00 Inventory turnover 2.20 Average collection period 90.00 Debt ratio 33 Times interest earned 7.00 Total asset turnover 0.75 Fixed asset turnover 1.00 Operating profit margin 20.0% Return on common equity 9.0% [Click on the icon located on the top-right corner of the data table above in order to copy it's contents into a spreadsheet.)Pamplin Inc. Income Statement for Years Ending 12/31/2014 and 12/31/2015 2014 2015 Sales (85% credit sales) $ 1,195 $ 1,448 Cost of goods sold 701 Gross profit $ 494 $ 594 Operating expenses 30 in 43 Depreciation 217 247 201 244 Operating income $ 247 350 Interest expense 54 65 Net income before taxes 193 285 Taxes (40%) 77 114 Net income S 116 171 (Click on the icon located on the top-right corner of the data table above in order to copy its contents into a spreadsheet.)Homework: HW4 Score: 0 of 3 pts 5 of 8 (2 complete) Problem 4-9 (similar to) (Ratio analysis) Using Pamplin Inc.'s financial statements shown in the popup window: a. Compute the ratios in the popup window, F::, for 2014 and 2015 to compare both against the industry norms. b. How liquid is the firm? c. Are its managers generating an adequate operating profit on the firm's assets? d. How is the firm financing its assets? e. Are its managers generating a good return on equity? Note: 15% of sales are cash sales, with the remaining 85%% being credit sales
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