- Current Assets Cash A R Assets Inventory Total Current Assets Long Term Assets Land And Bldg Machinery Other Fixed Asset 1 (251.06 KiB) Viewed 17 times
See Acme Corp's financial statements for last year andindustry ratios are provided
(1-1) Calculate and fill in Acme Corp's Financialratios.
If you used spreadsheet formulas to calculate youranswers in the "Acme Corp's Ratios" column, you do not need tocomplete the "Calculation" column. If you use a calculator,please type in the formula and numbers you used to find youranswer.
(1-2) Compare each of Acme Corp's ratios with theindustry average - given the ratio, is Acme Corp doing better orworse than the rest of the industry? (One word in this columnis acceptable.)
(1-3) Interpret and explain what each ratio means - whatdoes this ratio tell you about a company?
(1-4) How is Acme doing compared to the rest of theindustry? What are their strengths or what can they do toimprove?
Current Assets Cash A/R Assets Inventory Total current assets Long-term Assets Land and bldg Machinery Other Fixed Assets Total Long-term Assets Total Assets Acme Corporation Balance Sheet December 31, 2019 $72,000 439,000 894,000 1,405,000 238,000 132,000 61,000 431,000 $1,836,000 Liabilities Current Liabilities Accts & Notes Pay. Accruals Total Current Liabilities Long-term debt Total Liabilities Owner's Equity Retained earnings Common stock Total Owner's Equity Total Liabilities & Owner's Equity $432,000 170,000 602,000 404,290 1,006,290 254,710 575,000 829,710 $1,836,000 Acme Corportation Income Statement For the Year Ended December 31, 2109 Sales COGS Gross Profit Operating Expenses Selling Expenses Administrative Expenses Depreciation Misc. Expenses Operating Profit (EBIT) Taxes Net income $4,290,000 3,580,000 710,000 121,320 115,000 159,000 134,000 180,680 72,272 $108,408
Financial Ratios Quick ratio Current ratio Inventory turnover Days sales outstanding Fixed assets turnover Total assets turnover Return on assets Return on equity Debt ratio Profit margin on sales (1-1) Industry Ratios Acme Corp's Ratios 1 2.7 5.8 32 days 13 2.6 9.10% 18.20% 50% 3.50% *Industry average ratios have been constant for the past four years. *Based on year-end balance sheet figures. (1-1) (1-2) (1-3) Calculation Compare Explain (1-4) How is Acme doing compared to the rest of the industry? What are their strengths/what can they do to improve?