Week+4+Individual+Template

Week+4+Individual+Template - Scott Ward Reeds Clothier Case...

Info icon This preview shows pages 1–2. Sign up to view the full content.

View Full Document Right Arrow Icon
Scott Ward “Reed’s Clothier” Case Study and Questions There are 2 tabs within this file. Please be sure you work on both tabs. Formulate answers to questions 1, 2, 3, 4, 5, 6, 7, and 8. For question 1, you should calculate all the ratios listed in Exhibit 4 of the case Reed's Industry Liquidity Ratios Current Ratio 2 2.7 Quick Ratios 0.9 1.6 Receivables Turnover 4.9 7.7 Average Collection Turnover 74.1 47.4 Efficiency Ratios Total Asset Turnover 1.3 1.9 Inventory Turnover 2.9 7 Payable Turnover 7 15.1 Profitability Ratios Gross Profit Margin 29.8 33 Net Profit Margin 4.2 7.8 Return on Common Equity 16 25.9 INSTRUCTIONS: Input cells are gray, once you enter #'s in gray cells everything else calculates. in 0000's Net Sales 1938 Cost of Goods 1298.46 Gross Profit 639.54 Sell General & Admin 352.716 Depreciation & amortization 32 Interest expense 23.256 Income before taxes 246.126 Prov for Income Taxes 95 Net Income 152 1. Calculate all the ratios and compare Reed’s results with industry averages. What do these ratios indicate ?(Formatted to reflect Exhibit 4.) below. The ratios indicated the Reed's is in a poor position compared to the industry's average. Though some areas are not to far off, there is a need for change to
Image of page 1

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full Document Right Arrow Icon
Image of page 2
This is the end of the preview. Sign up to access the rest of the document.

{[ snackBarMessage ]}

What students are saying

  • Left Quote Icon

    As a current student on this bumpy collegiate pathway, I stumbled upon Course Hero, where I can find study resources for nearly all my courses, get online help from tutors 24/7, and even share my old projects, papers, and lecture notes with other students.

    Student Picture

    Kiran Temple University Fox School of Business ‘17, Course Hero Intern

  • Left Quote Icon

    I cannot even describe how much Course Hero helped me this summer. It’s truly become something I can always rely on and help me. In the end, I was not only able to survive summer classes, but I was able to thrive thanks to Course Hero.

    Student Picture

    Dana University of Pennsylvania ‘17, Course Hero Intern

  • Left Quote Icon

    The ability to access any university’s resources through Course Hero proved invaluable in my case. I was behind on Tulane coursework and actually used UCLA’s materials to help me move forward and get everything together on time.

    Student Picture

    Jill Tulane University ‘16, Course Hero Intern