Question: From the data and tables below: what was the comparison? Was it higher, lower, greater, ....etc.? Worldwide Widget Manufacturing, Inc. Statement of Cash Flows as
From the data and tables below: what was the comparison? Was it higher, lower, greater, ....etc.?
| Worldwide Widget Manufacturing, Inc. Statement of Cash Flows as of December 31, 2015 (in millions of dollars) | ||
| Balance of retained earnings. December 31, 2014 |
| $1,142 |
| Plus: Net income for 2015 | $30 | |
| Preferred stock | $98 |
|
| Common stock | $219 |
|
| Total cash dividends paid | $317 | |
| Balance of retained earnings, December 31, 2015 |
| $1,489 |
w. Plus: Net income for 2015 = $30
x. Preferred stock = $98
1. Earnings before taxes for 2015 2 ; $949
2. Gross plant and equipment for 2015 1 ; $3,240
3. Increase in fixed assets, December 31, 2015 3 ; $343
4. Net sales for 2015 2 ; $2,376
5. Balance of retained earnings, December 31, 2015 4 ; $1,489
6. Common stock and paid-in surplus for 2014 1 ; $300
7. Net Cash flow from investing activities, December 31, 2015 3 ; $377
8. Increase in inventory, December 31, 2015 3 ; $18
9. Accrued wages and taxes for 2014 1 ; $257
10. Book value per share (BVPS) for 2015 2 ; $7.16 total off -4.75
| Worldwide Widget Manufacturing, Inc. | |||
|
| Company | Industry | Comparison |
| Current ratio | 1.3 | 2.2 | -0.9 |
| Quick ratio | 0.6 | 1.1 | -0.5 |
| Cash ratio | 0.36 | 0.35 | 0.0 |
| Inventory turnover | 0.3 | 2 | -1.7 |
| Days' sales in inventory | 125 | 135 | -9.8 |
| Average payment period | 185 | 110 | 74.7 |
| Sales to working capital | 6.6 | 3 | 3.6 |
| Total asset turnover | 2.1 | 0.6 | 1.5 |
| Debt-to-equity | 1.1 | 1.1 | 0.0 |
| Profit margin | 24% | 16.50% | 7.32% |
| Gross profit margin | 68% | 48.13% | 20.18% |
| ROA | 13% | 8.78% | 4.67% |
| ROE | 37% | 19.45% | 17.05% |
| Dividend payout | 48% | 32% | 15.74% |
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