Us Republic Corporation Balance Sheet, December 31, 20x3

Us Republic Corporation Statement Of Income And Retained Earnings, Year Ended December 31, 20x3

a. Fill in the 20X3 column in the table that follows. US

b. Evaluate the position of the company using information from the table. Cite specific ratio levels and trends as evidence.
c. Indicate which ratios would be of most interest to you and what your decision would be in each of the following situations:
(i) US Republic wants to buy $500,000 worth of merchandise inventory from you, with payment due in 90 days.
(ii) US Republic wants you, a large insurance company, to pay off its note at the bank and assume it on a 10-year maturity basis at a current rate of 14 percent.
(iii) There are 100,000 shares outstanding, and the stock is selling for $80 a share. The company offers you 50,000 additional shares at this price

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LIABILITIES AND SHAREHOLDERS EQUITY ASSETS Cash Accounts receivable Inventory Fixed assets, net Notes payable, bank Accounts payable Accrued wages and taxes Long-term debt Preferred stock Common stock Retained earnings 5 4,000,000 2,000,000 2:000,000 12.000,000 4,000,000 2,000,000 1,000,000 S 1,000,000 5,000,000 7,000,000 7.000,000 Total liabilities and Total assets 30,000.000 shareholders equity 30,000,000 Net sales Credit Cash $16,000,00 4.000,000 20,000,000 Total Cost and Expenses Cost of goods sold Selling, general, and administrative expenses Depreciation Interest $12,000,000 2.200,000 1,400,000 1,200,000 Taxes on income Less: Dividends on preferred stock Add: Retained earnings at 1/1/x3 Less: Dividends paid on common stock Net income before taxes Net income after taxes Net income available to common shareholders Subtotal Retained earnings 12/31/X3) $16,800,000 3,200,000 1200,000 $ 2,000,000 240,000 S 1,760,000 2,600,000 5 4.360,000 360,000 S 4,000,000 US REPUBLIC CORPORATION INDUSTRY NORMS RATIO 20x1 250% 100% 5.0x 4.0x 35% 39% 17% 1590 154 0.9% 5.5% 20X2 200% 90% 4.5x 3.0x 40% 41% 15% 20% 12% 0.8x 1.5x 0X3 . Current ratio 2. Acid-test ratio 3 Receivable turnover Inventory turnover 5. Long-term debt/total capitalization 6. Gross profit margin 7. Net profit margin 8. Return on equity 9, Return on investment 10. Total asset turnover 11. Interest coverage ratio 225% 110% 6.02 4.0x 33% 40% 15% 2096 12% 1.0x 5.0%