Sales Cost of Goods Sold Gross Profit Selling and Administrative Expenses EBIT Interest Expense Income before...

 

Transcribed Image Text:

Sales Cost of Goods Sold Gross Profit Selling and Administrative Expenses EBIT Interest Expense Income before Tax Income Statement 2017 Taxes Net Income $ 7,000,000 5,000,000 $ 2,000,000 $ $ $ 1,700,000 300,000 50,000 250,000 100,000 150,000 Burnaby Mountain Trading Company Cashi Accounts Receivable Inventory Total Current Assets Fixed Assets Total Assets Accounts Payable Burnaby Mountain Trading Company Comparative Balance Sheets Bank Loans Total Current Liabilities Long-term Bonds. Total Liabilities $ 2017 $ 90,000 $ $ 810,000 800,000 $ 1,700,000 $1,600,000 2,600,000 2,400,000 $ 4,300,000 $4,000,000 2016 80,000 800,000 720,000 600,000 $ 500,000 $ 400,000 100,000 100,000 400,000 $ 1,000,000 $ 500,000 300,000 800,000 Common Stock (200,000 shares) Retainded Earnings Total Equity Total Liabilities and Equity 500,000 500,000 2,800,000 2,700,000 $ 3,300,000 $3,200,000 $ 4,300,000 $4,000,000 Note: The common shares are trading in the stock market for $27 each. Calculate the following ratios for the company: (Please keep in mind that when a ratio involves both income statement and balance sheet numbers, the balance sheet numbers for the beginning and end of the year must be averaged.) (11) (111) (iv) (v) (vi) ROE for 2017 ROA for 2017 Profit margin (return on sales) Total asset turnover Interest coverage ratio (times-interest-ratio) Compound leverage ratio (vii) Inventory turnover ratio (viii) (ix) (xi) The company's average collection period (ACP) Current ratio for 2017 Quick ratio for 2017 P/E ratio Sales Cost of Goods Sold Gross Profit Selling and Administrative Expenses EBIT Interest Expense Income before Tax Income Statement 2017 Taxes Net Income $ 7,000,000 5,000,000 $ 2,000,000 $ $ $ 1,700,000 300,000 50,000 250,000 100,000 150,000 Burnaby Mountain Trading Company Cashi Accounts Receivable Inventory Total Current Assets Fixed Assets Total Assets Accounts Payable Burnaby Mountain Trading Company Comparative Balance Sheets Bank Loans Total Current Liabilities Long-term Bonds. Total Liabilities $ 2017 $ 90,000 $ $ 810,000 800,000 $ 1,700,000 $1,600,000 2,600,000 2,400,000 $ 4,300,000 $4,000,000 2016 80,000 800,000 720,000 600,000 $ 500,000 $ 400,000 100,000 100,000 400,000 $ 1,000,000 $ 500,000 300,000 800,000 Common Stock (200,000 shares) Retainded Earnings Total Equity Total Liabilities and Equity 500,000 500,000 2,800,000 2,700,000 $ 3,300,000 $3,200,000 $ 4,300,000 $4,000,000 Note: The common shares are trading in the stock market for $27 each. Calculate the following ratios for the company: (Please keep in mind that when a ratio involves both income statement and balance sheet numbers, the balance sheet numbers for the beginning and end of the year must be averaged.) (11) (111) (iv) (v) (vi) ROE for 2017 ROA for 2017 Profit margin (return on sales) Total asset turnover Interest coverage ratio (times-interest-ratio) Compound leverage ratio (vii) Inventory turnover ratio (viii) (ix) (xi) The company's average collection period (ACP) Current ratio for 2017 Quick ratio for 2017 P/E ratio

Answer rating: 100% (QA)

ROE Net income Shareholders equity 1500003300000 0045 ROA Net income Total assets 1500004300000 ... View the full answer