Common sized 2013 2012 2013 2012 Dollar Chg Pct Chg ASSETS Non current assets

Common sized 2013 2012 2013 2012 dollar chg pct chg

This preview shows page 29 - 33 out of 43 pages.

Common-sized 2013 2012 2013 2012 Dollar Chg Pct Chg ASSETS Non-current assets 260,000 240,000 Goodwill 60,000 60,000 Intangible assets 120,000 100,000 440,000 400,000 Current assets Inventories 24,000 20,000 Trade receivables 50,000 60,000 Cash and cash equivalents 16,000 20,000 90,000 100,000 TOTAL ASSETS 530,000 500,000 EQUITY AND LIABILITIES Equity Share capital 200,000 200,000 Retained earnings 100,000 80,000 Revaluation reserve 30,000 20,000 Total equity 330,000 300,000 Non-current liabilities Long term borrowings 70,000 100,000 Current liabilities Trade and other payables 70,000 50,000 Short-term borrowings 20,000 16,000 30,000 30,000 Current tax payable 10,000 4,000 Total current liabilities 130,000 100,000 Total liabilities 200,000 200,000 530,000 500,000 4 What is Variance Analysis? 5 The following shows budget figures and actual figures (profit & expense) for a month. Compute the percentages and variances indicated. Follow the instructions in the comment boxes. Budget Actual Variance Jan Jan Jan Gross profit 42,589 32,845 Salaries 20,000 27,520 Payroll taxes 5,040 6,935 Lease 1,000 1,000 Phone 500 562 Supplies 300 142 Insurance 500 500 Total OpEx 27,340 36,659 What does it mean to common-size a report? Property, plant & equipment Current portion of long-term borrowings TOTAL EQUITY AND LIABILITIES
Image of page 29
EBITDA: Actual 15,249 -3,814 EBITDA: Plan Gross profit Salaries Payroll taxes Lease Phone Supplies Insurance Total OpEx EBITDA 6 Considering the variance figures in the above analysis, what expense seem most problematic? 7 The following table shows the headcount and profit & expense data for a department in a company. Compute the per-employee (common-sized) figures for the profit and expense items. Jan Feb Mar Apr May Jun Headcount 5 5 5 5 3 3 Gross profit 32,845 46,208 21,710 12,607 18,938 18,268 Salaries 27,520 22,701 25,984 22,618 16,761 16,783 Payroll taxes 6,935 5,721 6,548 5,700 4,224 4,229 Lease 1,000 1,000 1,000 1,000 1,000 1,000 Phone 562 737 608 678 486 259 Supplies 142 263 132 299 106 158 Insurance 500 500 500 500 500 500 Total OpEx 36,659 30,922 34,772 30,795 23,077 22,929 EBITDA: Actual -3,814 15,286 -13,062 -18,188 -4,139 -4,661 EBITDA: Plan 15,249 26,425 11,506 -8,996 -3,698 -2,997 Gross profit Salaries Payroll taxes Lease Phone Supplies Insurance Total OpEx EBITDA: Actual EBITDA: Plan 8 What is ratio analysis? 9 Describe issues related to interpreting industry averages and trenad and to comparing rations within industries. 10 Compare horizontal and veritical analysis.
Image of page 30
11 What is a profitability ratio? How are they interpreted? 12 In analyzIng a company's profitability, which ratios are commonly used? 13 Define financial leverage and list commonly used leverage ratios. 14 What is liquidity and what are the commonly used liquidity ratios? 15 Compute the Earnings per Share for the following: Net Income $ 658,964 2,000 EPS 16 Compute the Gross Profit Margin for the following: Sales $ 2,984,077 Cost of Sales $ 1,523,477 Gross Profit Margin 17 Compute the Net Profit Margin for the following: Net Income $ 458,964 Sales $ 2,925,707 Net profit margin 18 Compute the Return on Assets for the following: EBIT $ 310,838 Total Assets $ 3,612,824 Return on Assets 19 Compute the Return on Equity for the following: EBIT $ 310,838 Total Equity $ 2,123,456 Return on Equity Shares of common stock outstanding
Image of page 31
20 Compute the Debt Ratio for the following: Total Liabilities $ 1,645,225 Total Assets $ 3,922,889 Debt Ratio 21 Compute the Equity Ratio for the following: Stockholders' Equity $ 2,999,425 Total Assets $ 4,665,668 Equity Ratio 22 Compute the Times Interest Earned ratio for the following: EBIT $ 645,001 Interest $ 28,792 Times Interest Earned 23
Image of page 32
Image of page 33

You've reached the end of your free preview.

Want to read all 43 pages?

  • Fall '15
  • Threesome

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

Stuck? We have tutors online 24/7 who can help you get unstuck.
A+ icon
Ask Expert Tutors You can ask You can ask You can ask (will expire )
Answers in as fast as 15 minutes