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Complete "Problem 15-18 Common Size Statements and Financial Ratios for a Loan Application" in chapter 15 of

Managerial Accounting and present your responses in an Excel spreadsheet.


Please review attached with notes and correct errors which are notated

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Week 2 Assignment Template Name: Date: 5/2/2017 Class: Professor: Number/Problem Descrip±on This Year Last 1a Current Assets (a) $ 1,520,000.00 $ 1,0 Current LiabiliTes (b) $ 800,000.00 $ 43 Working Capital (a - b) $ 720,000.00 $ 66 1b Current Assets (a) $ 1,520,000.00 $ 1,0 Current LiabiliTes (b) $ 800,000.00 $ 43 Current RaTo (a/b) 1.90 2.534 1c Quick Assets (a) $ 550,000.00 $ 46 Current LiabiliTes (b) $ 800,000.00 $ 43 Acid-test RaTo (a/b) 0.69 1.0 1d Sales on Account (a) $ 5,000,000.00 $ 4,3 Average Receivables (b) $ 390,000.00 $ 27 AR ±urnover (a/b) 12.82 15. 28.47 23.0747 1e Cost of Goods Sold (a) $ 3,875,000.00 $ 3,4 Average Inventory (b) $ 950,000.00 $ 60 Inventory ±urnover RaTo (a/b) 4.0789473684 5.7 89.4838709677 63.4782 1f Average Sale Period $ 89.48 $ Average CollecTon Period $ 28.47 $ OperaTng Cycle 117.95 86. 1g Sales (a) $ 5,000,000.00 $ 4,3 Average total Assets (b) $ 3,000,000.00 $ 2,4 ±otal Asset ±urnover (a/b) 1.67 1.7 ALL YELLOW HIGHLIG DO NOT KEY OVER CORNER OF A CELL, I Average CollecTon Period: 365 days divided by AR ±urnover Average Sale Period: 365 days divided by Inventory ±urnover jbrynsaas: CURRENT YEAR + PRIOR YEAR DIVIDED BY 2. jbrynsaas: CURRENT YEAR + PRIOR YEAR DIVIDED BY 2. jbrynsaas: CURRENT YEAR + PRIOR YEAR DIVIDED BY 2.
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1h Total Liabili±es (a) $ 1,400,000.00 $ 1,0 Stockholders Equity (b) $ 1,600,000.00 $ 1,4 Debt-to-equity ra±o (a/b) 0.875 0.7 1i $ 400,000.00 $ 28 Interest expense (b) $ 72,000.00 $ 7 Time interest earned (a/b) 5.56 3.8 1j Average total assets (a) $ 3,000,000.00 $ 2,4 Average Stockholders equity (b) $ 1,600,000.00 $ 1,4 Equity mul±plier (a/b) 1.88 1.7 2a Saban Electronics Common-Size Balance Sheets (Percentages Not Dollar DescripTon ±his Year Last Current Assets: Cash 2.3% 6.1 Marketable Securi±es 0.0% 0.7 Accounts Receivable, Net 16.0% 12. Inventory 31.7% 24. Prepaid Expenses 0.7% 0.9 Total Current Assets 50.7% 44. Plant and Equipment, Net 49.3% 55. Total Assets 100.0% 100 Liabili±es: Current Liabili±es 26.7% 17. Bonds Payable, 12% 20.0% 24. Total Liabilites 46.7% 41. Stockholders' Equity: Common Stock, $15 par 25.0% 30. Retained Earnings 28.3% 27. Total Stockholders' Equity 53.3% 58. Total Liabili±es and Stockholders' Equity 100.0% 100 Note: Columns may not total down due to rounding of percentages 2b Saban Electronics Common-Size Income Statement (Percentages Not Dollar DescripTon ±his Year Last Sales 100.0% 100 Net income BEFORE interest AND taxes (a) jbrynsaas: CURRENT YEAR + PRIOR YEAR DIVIDED BY 2.
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Date: Class: Professor: ALL YELLOW HIGHLIGHTED CELLS R DO NOT KEY OVER FORMULAS CORNER OF A CELL, I HAVE INSERT CELL TO 5/2/2017 Number/Problem 1a...
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