Return on common stockholders’ equity $29,946,992 - (2430872-15801332) / 200,000 = 82.9% * Solvency ratios 9. Debt to total assets $7,628,563 / 34,825,498 = 22% 10. Times interest earned 3,272,314 / 121,533 = 26.9 Riordan Manufacturing, Inc. Horizontal Analysis for the Balance Sheet Increase or (Decrease) 2010($) 2009($) Amount % Assets Cash $2,807,029 $1,511,253 $1,295,776* 46.1%* Account Receivables $2,695,342 $2,644,307 $51,035 1.9% Current Portion of Note Receivable $102,976 $117,475 ($14,499) (14.1%) Inventory $8,517,203 $7,123,790 $1,393,413 16.4% Deferred Income Taxes – net $0 $0 $0 0% Pre-Paid Expenses and other Items $402,240 $458,875 ($56,635) (14.1%) Total Current Assets $14,524,790 $11,855,700 $2,669,090 18.4% Liabilities Current Liabilities Current Portion of Long-Term Debt $474,032 $484,894 ($10,862) (2.3%) Accounts Payable $1,391,385 $1,636,923 ($245,538) (17.6%) Accrued
Analysis-Beta Corporation 1. Sources of cash-Amount received from customers, Issuance of common stock(1991) Uses of cash-Amount paid to suppliers, Investments in capital(1991) 2. Difference between net income and cash-Difference between account receivables and payables ,high value of depreciation 3. Cash flow from operations- | 1991 | 1990 | 1989 | Cash flow from operations | 3919 | 7000 | 3670 | Capital expenditures | 6031 | 4600 | 3650 | | No | Yes | Yes | 4. No dividend payments | 1991 | 1990 | 1989 | Cash flow from operations | 3919 | 7000 | 3670 | Capital expenditures | 6031 | 4600 | 3650 | | No | Yes | Yes | 5.
Retrieved from http://www.fasb.org fasb.org. Retrieved from: http://www.fasb.org/cs/BlobServer?blobcol=urldata&blobtable=MungoBlobs&blobkey=id&blobwhere=1175820910926&blobheader=application/pdf Financial Accounting Theory and Analysis, 10e Chapter 11. ISBN: 9780470646281 Author: Richard G. Schroeder, Myrtle W. Clark, Jack M. Cathey. copyright © 2011 John Wiley & Sons Inc. fasb.org Statement no. 6 Retrieved from: http://www.fasb.org/jsp/FASB/Page/SectionPage&cid=1176156317989 United States Courts.
Income Statement figures for the most recent fiscal year Cost of goods sold Amount | Percentage of total revenue | $47,860,000,000 | 68.50% ($47,860,000,000/$69,865,000,000) | Reference: Consolidated Statements of Operations, Form 10-K, Page 31. Reference: Footnote 3 - Cost of Sales and Selling, General and Administrative Expenses, Form 10-K, Page 35. Reference: Footnote 11 –Inventory, Form 10-K, Page 42. Gross profit Amount | Percentage of total revenue | $22,005,000,000 ($69,865,000,000 - $47,860,000,000) | 31.50% ($22,005,000,000/$69,865,000,000)
Analyzing Financial Statements HSM 260 6/9/2013 2002 | 2003 | 2004 Current Ratio: 104,296/139,017= .75 | 82,058/93,975= .87 | 302,902/337,033= .90 Long-Term Solvency Ratio 391,270/310,246= 1.26 | 359,863/259,979= 1.38 | 699,004/338,937= 2.06 Contribution Ratio: 617,169/1,165,065= .53 | 632,889/1,244,261= .51 | 1,078,837/2,191,243= .49 Programs and Expense Ratio: 834,008.20/1,185,008= .70 | 945,579.77/1,316,681= .72 | 1,526,311/1,972,131= .77 General and Management Expense Ratio: 351,000/1,185,008= .30 | 371,101/1,316,681= .28 | 445,819/1,972,131= .23 Revenue and Expenses Ratio: 1,165,065/1,185,008= .98 | 1,244,261/1,316,681= .94 | 2,191,243/1,972,131= 1.11 Importance of Ratios The current ratio is important to calculate
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August 14, 2011 Week 6 Project 2 International Reporting Case A.) 1.) Return on Assets $58,333 (net income) / $1,404,726 (total assets) = 4.15% 2.) Return on stockholder’s equity $58,333 (net income) / $176,413 (stockholder’s equity) = 33.07% 3.) Debt to assets ratio $1,202,134 (total debt) / $1,404,726 (total assets) = 87.4% B.)
Stock Number Annual $ Volue J24 12,500 R26 9,000 L02 3,200 M12 1,550 P33 620 T72 65 S67 53 Q47 32 V20 30 What are the appropriate ABC groups of inventory items? (4 points) Stock Number Annual $ Volume % of Annual Volume % of Total Class: J24 12,500 46.21 79.48 A R26 9,000 33.27 L02 3,200 11.83 19.85 B M12 1,550 5.73 P33 620 2.29 T72 65 0.24 0.67 C S67 53 0.20 Q47 32 0.12 V20 30 0.11 Total Annual Volume 27,050 Problem 2: Assume you have a product with the following parameters: Holding cost per per unit Order per order What is the EOQ? What is the total cost for the inventory policy used? (4 points) Problem 3: Assume that our firm produces type C fire extinguishers. We make 30,000 of these fire extinguishers per year.
Financial Analysis Project Go to the Cango intranet http://myphlip2.pearsoncmg.com/masteringbusiness/cango/ and pull the financial statements. Use these to fill out the table found in Doc Sharing labeled Financial Analysis Project. Ratio | Formula(express the ratio in words) | Detailed Calculation(actual numbers from the financial statements used for the calculation) | Final number(Final result of the detailed calculation) | Explanation of why it is important | Efficiency RatioReceivable Turnover | sales/accounts receivables | 51,000,000/33,000,000 | 1.5455 | Shows the sales average of the accounts receivables | Efficiency RatioInventory Turnover | Sales/Inventory | 51,000,000/32,000,000 | 1.5938 | Shows how many times CanGo inventory sold and replaced over a period. |
Net cash used in financing activities | | | (73,479 | ) | | | (22,547 | ) | | | (16,763 | ) | Increase (decrease) in cash and cash equivalents | | | (41,774 | ) | | | 32,570 | | | | (27,975 | ) | | | | | | | | | | | | | | Cash and cash equivalents at beginning of year | | | 99,453 | | | | 66,883 | | | | 94,858 | | Cash and cash equivalents at end of year | | $ | 57,679 | | | $ | 99,453 | | | $ | 66,883 | | | | | | | | | | | | | | | Supplemental cash flow information: | | | | | | | | | | | | | Cash paid during the year for: | | | | | | | | | | | | | Income taxes, net of refunds received | | $ | 28,934 | | | $ | 14,381 | | | $ | 42,342 | | Interest (net of amount capitalized and extinguishment fees) | | | 6,449 | | | | 6,876 | | | | 6,164 | | | | | | | | | | | | | | | Supplemental schedule of non-cash investing and financing activity: | | | | | | | | | | | | | Notes receivable from noncontrolling interest holders in South Texas Protein, LLC, for capital contribution | | $ | 4,123 | | | $ | — | | | $ | — |