ratio analysis problems 1 of 4 ratio analysis problems 2 of 4 BUS 139 HW Ch 08 Financial Ratio Analysis Problems Name: (Name and date are only required if submitted in hard copy format) Earnings Statement Based on the earnings statement and balance sheet provided, calculate these ratios. To receive credit you must show your calculations. The definitions for these ratios are on a following sheet Net Revenue Cost of Goods Sold Gross Profit $390,000 $250,000 $140,000 You must show the colculations to receive credit. Without the calculations one receives zero credit even with the correct answer. Partial credit up to 50% is possible with the wrong answer provided some progress is made Selling Exp Marketing Exp Admin Exp W house EXp Depreciation $15,000 $30,000 $11,000 $90,000 $29,000 $5,000 Scoring Rubric 2 points each ratio Maximum score 16 points 1. Current ratio = $50,000 $13,000 $37,000 10,000 $27,000 10,000 $17,000 Operating Income (EBIT) 2. Days of inventory = Interest Exp 3. Average Collection Period = EBT Income Tax 4. (Total) Debt to Assets Net Earnings (EAT) 5. (Total) Debt to Equity Dividend Distribution 6. Times Interest Earned Contribution to Owners Equity 7. Return on Equity 8. Net Profit Margin Ratio = D Wilhelm 26 September 2017 D Wilhelm 26 September 2017