Financial Statement Analysis Assignment:

Your business has the following data:

Cash = $40,000

Average Accounts Receivable = $50,000

Supplies = $10,000

Equipment = $200,000

Accounts Payable = $40,000

Average Inventory = $60,000

Net Income = $80,000

Net Sales = $800,000 (100% Credit Sales)

Average Common Shares = 100,000

Cost of Goods Sold = $600,000

Market Price Per Share = $10

Required: Based on the above data, compute each of the following. Be sure to compare with the industry averages and comment on significance of your findings.

1) Current Ratio (Industry Average = 2.3 to 1)

2) Quick Ratio (Industry Average = 1.5 to 1)

3) Accounts Receivable Turnover (Industry Average = 62 days)

4) Inventory Turnover (Industry Average = 100 days)

5) Profit Margin Ratio (Industry Average = 8%)

6) Return on Assets (Industry Average = 16%)

7) Earnings Per Share = $1.20

8) Price-Earnings Ratio (Industry Average = 2)