Question: Please, I do not want the solution by hand Please, I do not want the solution by hand Modern Appliances Corporation has reported its financial
Please, I do not want the solution by hand
Please, I do not want the solution by handModern Appliances Corporation has reported its financial results for the year ended December 31, 2011.
Modern Appliances Corporation | |
Income Statement for the Fiscal | 31-Dec-11 |
Sales | 5,398,412,000 |
Cost of goods sold | 3,432,925,255 |
Gross profit margin | 1,965,486,745 |
Selling, general, and admin. expenses | 1,036,311,231 |
Depreciation | 299,928,155 |
Operating income | 629,247,359 |
Interest expense | 35,826,000 |
EBT | 593,421,359 |
Income taxes | 163,104,554 |
Net earnings | 430,316,805 |
| Consolidated Balance Sheet Modern Appliances Corporation Balance Sheet as of December 31, 2011 | |||
Assets | Liabilities and Stockholders Equity | ||
Cash and cash equivalents | $ 514,412,159 | Short-term borrowing | $ 117,109,865 |
Accounts receivable | 1,046,612,233 | Trade accounts payable | 466,937,985 |
Inventories | 981,870,990 | Other current liabilities | 994,289,383 |
Other current assets | 313,621,610 |
| |
Total current assets | $2,856,516,992 | Total current liabilities | $1,578,337,233 |
Net fixed assets | 754,660,275 | Long-term debt | 1,200,691,565 |
|
| Total liabilities | $2,779,028,798 |
Goodwill | 118,407,710 | Common stock | 397,407,352 |
Other assets | 665,058,761 | Retained earnings | 1,218,207,588 |
|
| Total equity | 1,615,614,940 |
Total assets | $4,394,643,738 | Total liabilities and stockholders equity | $4,394,643,738 |
Using the information from the financial statements, complete a comprehensive ratio analysis for Modern Appliances Corporation.
a. Calculate these liquidity ratios: current and quick ratios. (0.2 mark)
b Calculate these efficiency ratios: inventory turnover, total asset turnover. (0.2 mark)
c Calculate these leverage ratios: total debt ratio, debt-to-equity ratio, Equity multiplier. (0.2 mark)
d Calculate these profitability ratios: gross profit margin, net profit margin, ROA, ROE. (0.2 mark)
f. Use the DuPont identity, and after calculating the component ratios, compute the ROE for this firm. (0.2 mark)
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