Problem 5  - Ratio Analysis
Cherry Company
Comparative Income Statements (000's omitted)
For the Years Ended December 31, 20x5 and 20x4
	20x5	20x4
Net Sales	$       360	$       290
Cost of Goods Sold	255	172
Gross Profit	105	118
Operating Expenses	84	65
Operating Income	21	53
Interest Expense	10	12
Income Before Income Taxes	11	41
Income Taxes	4	16
Net Income	$           7	$         25
Cherry Company
Comparative Balance Sheets (000's omitted)
December 31, 20x5 and 20x4
Assets:	12/31/20x5	12/31/20x4
Current Assets	$         48	$       110
Property, Plant, and Equipment (net)	285	245
Total Assets	$       333	$       355
Liabilities and Stockholders' Equity:
Current Liabilities	36	54
Long-Term Liabilities	175	123
Total Liabilities	211	177
Stockholders' Equity	122	178
Total Liabilities and Stockholders' Equity	$       333	$       355
Common Stock:	20x5	20x4
Market Price Per Share at 12/31	$   19.80	$   28.40
Cash Dividends Per Share	$      2.80	$      2.20
Problem 5  - Answers here: use 2 decimal places
Ratios Summary	20x5	20x4
Current ratio
Debt to Equity Ratio
Net Profit Margin Ratio
Gross Profit Ratio
Return on Equity
Dividend Yield Ratio

Additional Information: 

Total Assets at 12/31 20x3 was $200.

Total Liabilities at 12/31/20x3 were $66.

Total stockholders’ equity at 12/31 20x3 was $144.

     Current ratio = Current Assets/Current Liabilities

     Debt to Equity Ratio = Average Total Liabilities/Average Stockholders' Equity

     Net Profit Margin Ratio = Net Income/Net Sales

     Gross Profit Ratio = Gross Profit/Net Sales

     Return on Equity = Net Income/Average Stockholders' Equity

     Dividend Yield Ratio = Dividends per Share/Market Price per Share

Please, Comments on overall performance:

Answer rating: 100% (QA)

Problem 5 Ratio analysis Calculations for different ratios are shown in the following table Ratio summary formula 123120x5 123120x4 Current ratio ... View the full answer