Respuesta :
Answer:(a) 5.4 (b) 0.53, (c) 0.42, (d) 1.9 (e) 32.1 (f) 11.4 (g)17 (h) 21 (i) 3.4 (j) 3.7 (k) 41% (l) 86,000
Explanation:
(a) Earning per share = Total earning after tax / Number of shares
= Number of shares = 290,000 ÷ 5 = 58,000
= 313,400 ÷ 58,000 = 5.4
(b) Return on common stockholders equity
= Earning Available to ordinary equity /Total shareholders equity - preference shares
= 290,000/603,400 - 58,800
= 290,000 ÷ 544,600
= 0.53
(c) Return on Asset = Net income / Average Total Asset
= Average Total Asset = 1,026,900 ÷ 2 = 513,450
=218,000 ÷ 513,450
= 0.42
(d) Current Ratio = CurrentAsset ÷ Current Liabilities
= 377,900 ÷ 203,500
= 1.85
= 1.9 approximately
(e) Account Receivable Turnover = Annual credit sales ÷ Average Account Receivable
Average Account Receivable = 117,800 ÷ 2 = 58,900
= 1,890,540 ÷ 58,900
=32.09
= 32.1 approximately
(f) Average Collection Period = Average Account Receivable ÷ (Annual Sales ÷ 36365days )
=58,900÷ (1,890,540 ÷ 365)
= 58,900÷ 5,179.56
=11.37
= 11.4 approximately
(g) Inventory Turnover = Cost of good sold ÷ Average Inventory
Average inventory = 126,000 ÷ 2 = 63,000
1,058,540 ÷ 63,000 = 16.8
= 17 approximately
(h) Days in Inventory = 365 ÷ inventory turnover
= 365 ÷ 17 = 21.4
= 21
(i) Times interest earned = income before interest & income taxes ÷ interest expense
= 310,000 ÷ 92,000
= 3.36
= 3.4 approximately
(j) Asset Turnover = Net Sales ÷ Average Total Asset
Average Total Asset = 1,026,900 ÷ 2 = 513,450
= 1,890,540 ÷ 513,450
= 3.68
= 3.7 approximately
(k) Debt to Asset Ratio = Total Liabilities ÷ Total Asset × 100%
= 423,500 ÷ 1,026,900 × 100%
= 0.412 × 100
= 41.2%
= 41%
(l) Free cash flow = Cash from operating Activities - Capital Expenditure
=223,000 - 137,000
=86,000
Ratio analysis is the comparative or the relationship analytical tool between two components of the balance sheet and the income statement.
The answers to various parts of the question are as follows:
(a) Earnings per share
[tex]\begin{aligned}\text{Earning per share}&=\frac{\text{Total Earning after tax}}{\text{Number of shares}}\\&=\frac{\$313,400}{58,000}\\&=\$5.4\;\text{per share} \end{aligned}[/tex]
(b) Return on common stockholders’ equity
[tex]\begin{aligned}\text{Return}&=\frac{\text{ Earning Available to ordinary equity }}{\text{Total shareholders equity - preference shares}}\\&=\frac{\$290,000}{\$603,400-\$58,800}\\&=0.53 \end{aligned}[/tex]
(c) Return on assets
[tex]\begin{aligned}\text{Return on Asset} &= \frac{\text{Net income}}{\text{Average Total Asset}}\\&=\frac{\$218,000}{\$513,450}\\&=0.42 \end{aligned}[/tex]
(d) Current ratio
[tex]\begin{aligned}\text{Current Ratio}&=\frac{\text{Current Asset}}{\text{Current Liabilities}}\\&=\frac{\$377,900}{\$203,500}\\&=1.85 \end{aligned}[/tex]
(e) Accounts receivable turnover
[tex]\begin{aligned}\text{Account Receivable Turnover}&=\frac{\text{Annual credit sales}}{\text{Average Account Receivable}}\\&=\frac{\$1,890,540}{\$58,900}\\&=32.09 \end{aligned}[/tex]
(f) Average collection period
[tex]\begin{aligned}\text{Average Collection Period}&=\frac{\text{Average Account Receivable}}{\frac{\text{Annual Sales}}{365}}\\&=\frac{\$58,900}{\frac{\$1,890,540}{365}}\\&=11.37 \end{aligned}[/tex]
(g) Inventory turnover
[tex]\begin{aligned}\text{Inventory Turnover}&=\frac{\text{Cost of good sold}}{\text{Average Inventory}}\\&=\frac{\$1,058,540}{\$63,000}\\&=16.80 \end{aligned}[/tex]
(h) Days in inventory
[tex]\begin{aligned}\text{Days in Inventory}&=\frac{365}{\text{Inventory Turnover}}\\&=\frac{365}{16.80}\\&=21 \end{aligned}[/tex]
(i) Times interest earned
[tex]\begin{aligned}\text{Times interest earned }&=\frac{\text{Income before interest, income taxes}}{\text{Interest expense}}\\&=\frac{\$310,000}{\$92,000}\\&=3.36\end{aligned}[/tex]
(j) Asset turnover
[tex]\begin{aligned}\text{Asset Turnover}&=\frac{\text{Net Sales}}{\text{Average total assets}}\\&=\frac{\$1,890,540}{\$513,450} \\&=3.68\end{aligned}[/tex]
(k) Debt to assets ratio
[tex]\begin{aligned}\text{Debt to Asset Ratio}&=\frac{\text{Total Liabilities}}{\text{Total Asset}}\times100\\&=\frac{\$423,500}{\$1,026,900}\times100\\&=41.20\% \end{aligned}[/tex]
(l) Free cash flow
[tex]\begin{aligned}\text{Fre cash Flow}&=\text{Cash from operating Activities - Capital Expenditure}\\&=\$223,000-\$137,000\\&=\$86,000 \end{aligned}[/tex]
To know more about ratio analysis, refer to the link:
https://brainly.com/question/14985423
