Question: Problem 6-9 Consider the current and pro forma financial statements that follow: 2015 2016 Sales 200 220 Variable Costs 100 110 Fixed Costs 80 80
| Problem 6-9 | |||
| Consider the current and pro forma financial statements that follow: | |||
| 2015 | 2016 | ||
| Sales | 200 | 220 | |
| Variable Costs | 100 | 110 | |
| Fixed Costs | 80 | 80 | |
| Net Income | 20 | 30 | |
| Dividends | 10 | 22 | |
| Current assets | 120 | 132 | |
| Fixed Assets | 200 | 200 | |
| Total Assets | 320 | 332 | |
| Current Liabilities | 40 | 44 | |
| Long-Term Debt | 40 | 40 | |
| Common Stock | 40 | 40 | |
| Retained Earnings | 200 | 208 | |
| Total Liabilities and Equity | 320 | 332 | |
| AFN = 0 | |||
| Compute the following ratios for 2015 and 2016 (PLEASE SHOW WORK!) | |||
| 2015 | 2016 | ||
| Curret Ratio | |||
| Debt to Assets Ratio | |||
| Sales to Assests Ratio | |||
| Net Profit Margin | |||
| Return on Assets | |||
| Return on Equity | |||
| Comments on any trends revealed by your ratio analysis. | |||
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