Question: Please help solve! Thanks! Problem 4.31 The following are the financial statements for Nederland Consumer Products Company for the fiscal year ended September 30, 2013.
Please help solve! Thanks!
Problem 4.31 The following are the financial statements for Nederland Consumer Products Company for the fiscal year ended September 30, 2013.| Nederland Consumer Products Company Income Statement for the Fiscal Year Ended September 30, 2013 | |
| Net sales | $51,407 |
| Cost of products sold | 25,076 |
| Gross margin | $26,331 |
| Marketing, research, administrative exp. | 15,746 |
| Depreciation | 758 |
| Operating income (loss) | $9,827 |
| Interest expense | 477 |
| Earnings (loss) before income taxes | $9,350 |
| Income taxes | 2,869 |
| Net earnings (loss) | $6,481 |
| Nederland Consumer Products Company Balance Sheet as of September 30, 2013 | ||||
| Assets: | Liabilities and Equity: | |||
| Cash and marketable securities | $5,469 | Accounts payable | $3,617 | |
| Investment securities | 423 | Accrued and other liabilities | 7,689 | |
| Accounts receivable | 4,062 | Taxes payable | 2,554 | |
| Total inventories | 4,400 | Debt due within one year | 8,287 | |
| Deferred income taxes | 958 | |||
| Prepaid expenses & other receivables | 1,803 | |||
| Total current assets | $17,115 | Total current liabilities | $22,147 | |
| Property, plant, and equipment, at cost | 25,304 | Long-term debt | 12,554 | |
| Less: Accumulated depreciation | 11,196 | Deferred income taxes | 2,261 | |
| Net property, plant, and equipment | $14,108 | Other non-current liabilities | 2,808 | |
| Net goodwill & other intangible assets | 23,900 | Total liabilities | $39,770 | |
| Other non current assets | 1,925 | Convertible Class A preferred stock | 1,526 | |
| Common stock | 2,141 | |||
| Retained earnings | 13,611 | |||
| Total stockholders equity (deficit) | $17,278 | |||
| Total assets | $57,048 | Total liabilities and equity | $57,048 |
| Industry Average | Ratio | |||
| Current Ratio | 2.05 | times | ||
| Quick Ratio | 0.78 | times | ||
| Gross margin | 23.9 | % | % | |
| Net profit margin | 12.3 | % | % | |
| Debt ratio | 0.23 | times | ||
| Long-term debt to equity | 0.98 | times | ||
| Interest coverage | 5.62 | |||
| ROA | 5.3 | % | % | |
| ROE | 18.8 | % | % |
Step by Step Solution
There are 3 Steps involved in it
1 Expert Approved Answer
Step: 1 Unlock
Question Has Been Solved by an Expert!
Get step-by-step solutions from verified subject matter experts
Step: 2 Unlock
Step: 3 Unlock
