FIN 1013 Assignment # 1
Group #	1
The following account information was taken from Zazabor Company's latest income statement
Revenue	653,000
Cost of sales	328,100
Selling and marketing expenses	110,100
Adminsitrative expenses	98,000
Interest expenses	18,000
The company's income tax rate is:	26%
Additionally, the following account information was taken from Zazabor Company's latest Statement of Financial Position
Cash	36,100
Marketable securities	45,000
Trade receivables	28,500
Prepaid expenses	18,000
Inventories	37,000
Equipment (net)	85,600
Building (net)	176,200
Trade/other payables	22,300
Notes payable (due in 1 year)	42,000
Accruals	17,200
Income tax payable	11,400
Loan payable (long term)	128,000
Common Shares	135,000
Retained earnings	70,500
Calculate the following ratios and compare against insdustry benchmark
(Note: 2 digits after decimal)
					RUBRICS
			Benchmark
1) current ratio			1.5		1	.5 for # and .5 for F/U
2) debt ratio			45%		1
3) times-interest-earned ratio			5	times	1
4) average collection period			20	days	1
5) inventory turnover ratio			7.5	times	1
6) total asset turnover ratio			1.5	times	1
7) Return on Assets ratio			11%		1
8) Profit margin on revenue			14%		1
9) Return on equity ratio			30%		1
10) Quick ratio			1.25		1
					10 marks