Using the financial statements of Snider Corporation, calculate the 13 basic ratios SNIDER CORPORATION Balance Sheet December
Question:
Using the financial statements of Snider Corporation, calculate the 13 basic ratios
SNIDER CORPORATION Balance Sheet December 31, 20X1
Assets
Current assets:
Cash $52,500
Marketable securities 22,500
Accounts receivable (net) 178,000
Inventory 290,000
Total current assets $543,000
Investments 66,200
Plant and equipment. $611,000
Less: Accumulated depreciation 272,000
Net plant and equipment 339,000
Total assets $948,200
Liabilities and shareholders' equity
Current liabilities:
Accounts payable $95,100
Notes payable 78,700
Accrued taxes 12,000
Total current liabilities $185,800
Long-term liabilities:
Bonds payable 159, 405
Total Liability2 $0.405
Owner's Equity
Preferred Stock, $50
Par Value $100,000
Common Stock, Nominal value of $ 1 80,000
Capital paid in excess of the nominal value 190 000
Utilities retained 233 000
Total Accounting Capital $ 603 000
Total Liabilities and Accounting Capital $ 948 200
Snider Corporation Status of Results for the year ending December 31, 20x1
Sales (on credit) $ 2 067 000
OPERATIVE UTILITY (EBIT) $ 228,000
Interest expense 30,100
profit before tax (EBT) $ 197,900
Taxes 83 000 gain after taxes (EAT) $ 114,900 *Includes $ 39,600 in lease payments.
Using the above financial statements of Snider Corporation, calculate the following ratios.
a. Profitability ratios.
b. Asset utilization rates.
c. Liquidity reasons.
d. Reasons for using the debt.
Expert Answer:
To calculate the ratios well use the financial data provided in the balance sheet and income statement of Snider Corporation Lets calculate the 13 bas... View the full answer
Foundations of Financial Management
ISBN: 978-1259024979
10th Canadian edition
Authors: Stanley Block, Geoffrey Hirt, Bartley Danielsen, Doug Short, Michael Perretta
