The intent of this assignment is just basic accounting and financial statement construction. These will get more complicated over the course of the semester, but this one is just to ensure that everyone is on the same page. Pay close attention to the notes at the end of the assignment and the definitions posted to the blackboard site $($Ratio Definitions and Case Analysis$).$ You will only need each number on time. Check the syllabus for the due date!

Below are numbers from a balance sheet and income statement. Construct the financial ratios requested below.

$\backslash$table$[[$Sales$,542154],[$Operating Costs,$381077],[$Depreciation Expense,$10000],[$Interest Expense,$5000],[$Tax Expense,$29408],[$Cash$,2039],[$Receivables$,42810],[$Inventories$,66323],[$Fixed Assets, Net,$50000],[$Payables$,11000],[$Accrued Expenses,$10000],[$Long$-$Term Loan,$50000],[$Common Equity,$90172]]$

Assignment Notes:

Answers are correct if they are within $5\%$ of the correct response.

Submit as many times as you would like before the submission deadline. I will take the most recent submissions.

Use excel to solve these problems. It reduces rounding problems and is an important skill to have. Grade appeals will be based on the Excel sheet you submit. If you use Google Sheets for your work, download the file as an excel file to submit it$.$ Google sheets are not acceptable.

Show your work in Excel using Excel formulas to solve the problems.

Submitted answers should have two decimals places $($i$.$e$,0\mathrm{.}01).$ For things that are percentages, submit them as $2$ whole numbers and two decimal places $-23\mathrm{.}20\%.$ The margin for error on the grade is based on a two$-$decimal place calculation. Things that are returns or portions of other numbers from the income statement are percentages. The rest are ratios and are not expressed as percentages. Percentages are labeled on the submission link.

Definitions for the ratios are on the course site. Be careful, ROA, for example has several different definitions in the popular press so stick to these definitions rather than something you find through Google.

Accruals are debts that are soon due but have not yet been paid out $-$ things like the salary owed to employees between pay periods show up as accruals.

Assignment:

Prepare an income statement and a balance sheet for this company using the information provided. Calculate $($and show your work in Excel using Excel formulas$)$:

Return on Equity

Net Working Capital to Assets

Net Profit Margin $(\%)$

Current Ratio

Return on Assets $(\%)$

Total Net Profit $($Not $\%-$ in $$ $)$

Interest Coverage Ratio

Quick Ratio

Equity Multiplier

Inventory to Net Working Capital