W3 HW Work.xlsx - Buildings 20,000 BALANCE SHEET Mortgage 1,500 Cash 3,000 Cash 3,000 Accounts Receivable 650 Accounts Payable 1,500 Inventory 2,369

W3 HW Work.xlsx - Buildings 20,000 BALANCE SHEET Mortgage...

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Unformatted text preview: Buildings 20,000 BALANCE SHEET Mortgage 1,500 Cash 3,000 Cash 3,000 Accounts Receivable 650 Accounts Payable 1,500 Inventory 2,369 Short Term Loan 850 Current Assets 6,019 Accounts Receivable 650 Buildings 20,000 Machinery & Equipment 2,500 Machinery & Equipment 2,500 Inventory 2,369 Fixed Assets 22,500 Long Term Loan 5,500 SG&A 3,000 Total Assets 28,519 Sales 10,000 Depreciation 300 Cost of Goods 3,200 Current Ratios 2.56 Interest Expense 100 Quick Ratio 1.5531914893617 Taxes 400 Total Debt Ratio 32.79% Long Term Debt Ratio 0.267492070770759 Inventory Turn Over Ratio 4.22 Days of sales in recievables 23.73 Net working Capital 3,669 Total asset turnover 0.35 return on sales 0.3 return on assets 0.105193029208598 return on equity 0.156502686629454 Net Income is positiveCompany's current ratio is greater than one indicating that it has sufficient funds to cover short-term liabilities should they come upTotal Debt Ratio is less than oneLongterm debt ratio less than one indicating that the firm is financed mostly through equityNet Working Capital is positiveGross Profit is positiveThe information listed above is a very fundemental way to view if a company is doing okay. There are lots of other ratios given in this case and it is hard to use them because theare some fundamental things that can be done to make this basic assessment. The same logic is intended to naswer number 20 as well. Accounts Payable 1,500 Short Term Loan 850 Current Liabilities 2,350 Mortgage 1,500 Long Term Loan 5,500 Long Term Liabilities 7,000 Shareholders' Equity 19,169 Total Liabilities & Equity 28,519 P&L (aka Income Statement) Sales Cosft of Goods Gross Margin (Gross Profit) SG&A Depreciation expenses Operating Profit Interest expense Taxes Net Income 10,000 3,200 6,800 3,000 300 3,500 100 400 3,000 ...
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  • Fall '17
  • Staff
  • Balance Sheet, Generally Accepted Accounting Principles, gross margin, Machinery & Equipment

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