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In: Business and Management

Submitted By shawnni1
Words 561
Pages 3
1. Preparation of Liquidity Ratios:

Current Assets 1,520,400 2,629,800 2.8 2.5
Current Liabilities 544,200 1,046,000


Quick Assets 836,200 1,262,400 1.54 1.21
Current Liabilities 544,200 1,046,000


Net Sales 12,560,000 25,210,000 22.72 25.58
Average Accounts receivable 552,800 985,400

D. Day's Sales Uncollected

Days in year 365 365 16.06 days 14.27 days
Receivable Turnover 22.72 25.58

E. Inventory Turnover Ratio

cost of goods sold 6,142,000 14,834,000 9.75 11.84 average inventory 629,800 1,253,400

F. Days Inventory on Hand

days in year 365 365 37.44 days 30.83 days inventory turnover 9.75 11.84

G. Payables Turnover

cost of goods sold+/- change in inven 6,142,000 14,834,000 17.86 25.91 average accounts payable 344,000 572,600

H. Days Payable

days in year 365 365 20.44 days 14.09 days payables turnover 17.86 25.91

2. Profitability Analysis: FAST STYLE FAST STYLE
A. Profit Margin

Net Income 215,400 305,800 1.71% 1.21%
Net Sales 12,560,000 25,210,000

B. Assets Turnover Net Sales 12,560,000 25,210,000 2.52 times 2.7 times
Average Total Assets 4,987,200 9,326,600

C. Return on Assets

Net Income 215,400 305,800 4.32% 3.28%
Average Total Assets 4,987,200 9,326,600

D. Return on Equity

Net Income 215,400 305,800 8.82% 4.87%
Average stockholder's equity 2,443,000 6,280,600

3. Long term solvency

A. Debt to Equity Ratio

Total Liabilities 2,544,200 3,046,000 1.04 times 0.48 times
Stockholders equity 2,443,000 6,280,600

B. Interest Coverage Ratio

Income before Income Tax + Int Exp 415,000+194,000 605,800+228,000 3.14 times 3.66 times
Interest Expenses 194,000 228,000

4. Cash Flow…...

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