Hinson 5-5 Company of the Term - Financial Ratios

Hinson 5-5 Company of the Term - Financial Ratios -...

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Intermediate Accounting I Assignment 5-5 Company of the Term – Financial Ratios Jamie Hinson February 12, 2008 **Please note the figures are from 2007. 1. Receivable Turnover = Net Sales / Average Accounts Receivable (net) = $2,871,800 / $11,400,000 = 25.2% 2. Average Collection period = 365 days / Accounts Rec. Turnover Ratio = 365 / 0.252 = $1,448.41 3. Inventory Turnover = COGS / Average Inventory = $1,867,300 / $405,900 = 4.6 4. Average Days in Inventory = 365 days / Inventory Turnover Ratio = 365 / 0.005 = 73,000 5. Asset Turnover = Net Sales / Average Total Assets = $2,871,800 / $2,277,200 = 1.26 or 126%
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6. Profit Margin on Sales = Net Income / Net Sales = $113,400 / $2,871,800 = 3.95 7. Return on Assets = Net Income / Average Total Assets = $113,400 / $2,277,200 = 4.98% 8. Return on Equity = Net Income / Average Shareholders’ Equity = $113,400 / $479,300 = 23.7% 9. Current Ratio = Current Assets / Current Liabilities = $999,300 / $586,600 = 1.7% 10. Debt to Equity Ratio = Total Liabilities / Shareholders’ Equity
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This note was uploaded on 09/08/2010 for the course ACCOUNTING 320 taught by Professor Hickman during the Spring '10 term at Heidelberg.

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Hinson 5-5 Company of the Term - Financial Ratios -...

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