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Use the following financial statements of Heifer Sports Inc. in Table 14.14 to find Heifer's: TABLE 14.14:

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Use the following financial statements of Heifer Sports Inc. in Table 14.14 to find Heifer's:
TABLE 14.14: Heifer Sports financial statements
align="center">Income statement 2015 $5,500,000 Sales Cost of goods sold 2,850,000 Depreciation 280,000 Selling & administrative expens

a. Inventory turnover ratio in 2015.
b. Debt/equity ratio in 2015.
c. Cash flow from operating activities in 2015.
d. Average collection period.
e. Asset turnover ratio.
f. Interest coverage ratio.
g. Operating profit margin.
h. Return on equity.
i. P/E ratio.
j. Compound leverage ratio.

Inventory Turnover Ratio
Inventory Turnover RatioThe inventory turnover ratio is a ratio of cost of goods sold to its average inventory. It is measured in times with respect to the cost of goods sold in a year normally.    Inventory Turnover Ratio FormulaWhere,... Financial Statements
Financial statements are the standardized formats to present the financial information related to a business or an organization for its users. Financial statements contain the historical information as well as current period’s financial... Asset Turnover
Asset turnover is sales divided by total assets. Important for comparison over time and to other companies of the same industry. This is a standard business ratio.
Transcribed Image Text:

Income statement 2015 $5,500,000 Sales Cost of goods sold 2,850,000 Depreciation 280,000 Selling & administrative expenses 1,500,000 $ 870,000 EBIT Interest expense 130,000 $ 740,000 Taxable income 330,000 Taxes $ 410,000 Net income Balance sheet, year-end 2015 2014 Assets $ 50,000 $ 40,000 Cash Accounts receivable 660,000 690,000 480,000 Inventory 490,000 $1,200,000 $1,210,000 Total current assets Fixed assets 3,100,000 2,800,000 $4,300,000 $4,010,000 Total assets Liabilitles and shareholders' equity $ 450,000 $ 340,000 Accounts payable 480,000 Short-term debt 550,000 $ 820,000 $1,000,000 Total current liabilities Long-term bonds 2,520,000 2,200,000 Total liabilities $3,340,000 $3,200,000 $ 310,000 $ 310,000 Common stock Retained earnings 650,000 500,000 $ 960,000 Total shareholders' equity 810,000 $4,300,000 $4,010,000 Total liabilities and shareholders' equity

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