question archive Bob's Furniture Store Balance Sheet as of December 2010 & 2011 2010 2011 Cash 11,250 650 Accounts Receivable 15,625 20,800 Inventory 36,250 59,150 Total Current Asset 63,125 80,600 Land 25,000 33,800 Building 87,500 130,000 -Accumulated Depreciation 35,000 49,400 Total Fixed Assets 140,625 195,000 Total Assets 140,625 195,000 Accounts Payable 13,125 28,600 Short-Term Bank Notes 21,250 61,100 Total Current Liabilities 34,375 89,700 Long-Term Debt 35,938 29,835 Common Stock 39,374 40,950 Retained Earnings 30,938 34,515 Common Equity 70,312 75,465 Total Liabilities and Equity 140,625 195,000 Income Statements Years Ending December 2010 and 2011 2010 2011 Sales (all credit) $187,500
Bob's Furniture Store Balance Sheet as of December 2010 & 2011 2010 2011 Cash 11,250 650 Accounts Receivable 15,625 20,800 Inventory 36,250 59,150 Total Current Asset 63,125 80,600 Land 25,000 33,800 Building 87,500 130,000 -Accumulated Depreciation 35,000 49,400 Total Fixed Assets 140,625 195,000 Total Assets 140,625 195,000 Accounts Payable 13,125 28,600 Short-Term Bank Notes 21,250 61,100 Total Current Liabilities 34,375 89,700 Long-Term Debt 35,938 29,835 Common Stock 39,374 40,950 Retained Earnings 30,938 34,515 Common Equity 70,312 75,465 Total Liabilities and Equity 140,625 195,000 Income Statements Years Ending December 2010 and 2011 2010 2011 Sales (all credit) $187,500
Subject:FinancePrice: Bought3
Bob's Furniture Store
Balance Sheet as of December 2010 & 2011
| 2010 | 2011 | |
| Cash | 11,250 | 650 |
| Accounts Receivable | 15,625 | 20,800 |
| Inventory | 36,250 | 59,150 |
| Total Current Asset | 63,125 | 80,600 |
| Land | 25,000 | 33,800 |
| Building | 87,500 | 130,000 |
| -Accumulated Depreciation | 35,000 | 49,400 |
| Total Fixed Assets | 140,625 | 195,000 |
| Total Assets | 140,625 | 195,000 |
| Accounts Payable | 13,125 | 28,600 |
| Short-Term Bank Notes | 21,250 | 61,100 |
| Total Current Liabilities | 34,375 | 89,700 |
| Long-Term Debt | 35,938 | 29,835 |
| Common Stock | 39,374 | 40,950 |
| Retained Earnings | 30,938 | 34,515 |
| Common Equity | 70,312 | 75,465 |
| Total Liabilities and Equity | 140,625 | 195,000 |
|
Income Statements |
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Years Ending December 2010 and 2011 |
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|
2010 |
2011 |
|
|
Sales (all credit) |
$187,500.00 |
$400,000.00 |
|
Less: Cost of goods sold |
-$112,500.00 |
-$240,000.00 |
|
Gross profit |
$75,000.00 |
$160,000.00 |
|
Operating expenses |
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|
Fixed cash operating expenses |
-$31,500.00 |
-$52,500.00 |
|
Variable operating expenses |
-$18,750.00 |
-$40,000.00 |
|
Depreciation |
-$6,750.00 |
-$25,000.00 |
|
Total operating expenses |
-$57,000.00 |
-$117,500.00 |
|
Earnings before interest and taxes |
$18,000.00 |
$42,500.00 |
|
Interest expense |
$5,719.00 |
$9,094.00 |
|
Earnings before taxes |
$12,281.00 |
$33,407.00 |
|
Taxes |
-$6,141.00 |
-$16,703.00 |
|
Net income |
$6,141.00 |
$16,703.00 |
- Calculate the financial ratios for 2010 and 2011.
|
Calculate the following financial ratios for 2010 and 2011 |
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|
2010 |
2011 |
Industry |
|
|
Current ratio |
1.84 |
0.90 |
2.00 |
|
Acid Test Ratio |
0.78 |
0.24 |
0.80 |
|
Average collection period |
30.42 |
18.98 |
37.00 |
|
Inventory turnover |
3.10 |
4.06 |
2.50 |
|
Debt ratio |
50.00% |
61.30% |
58.00% |
|
Times interest earned |
3.15 |
4.67 |
3.80 |
|
Operating profit margin |
9.60% |
10.63% |
10.00% |
|
Total asset turnover |
1.33 |
2.05 |
1.14 |
|
Fixed asset turnover |
2.42 |
3.50 |
1.40 |
|
Operating return on assets |
12.80% |
21.79% |
11.40% |
|
Return on equity |
9.00% |
22.13% |
9.50% |
B Compare and evaluate Bob's Furniture store 2011's ratios in terms of liquidity, capital structure, asset management efficiency, and profitability to the industry standard.
C At the end of 2011 the firm has 15,000 shares of common stock outstanding, selling for $15 each. Find the following:(i) earnings per share
(ii) price-earnings ratio
(iii) market -to -book ratio?
Show all steps and formula
