402 | CHAPTER 16 Reread Formula Cee a oe) Current Ichentenat reeemet Current Assets $1730000 4, liquidity; the ability to meet Current Liabilities $290,000 near-term obligations) Quick eee ee Cash + Short-term Investments + Accts, Rec. $1550000_ 5, of liquidity; the ability to meet Current Liabilities $290,000 ” near-term obligations) Deane ary Debt to Total Assets (Chapter 13: Percentage of cTotal Debt S1190,0007 Tho assets financed by long-term Total Assets $4,100,000 and short-term debt) Debt to Total Equity Total Debt $1,190,000 (Chapter 13: Proportion of Toul cauny ——— =o financing that is debt-related) VERE So ‘Times Interest Eamed Income Before Income Taxes and Interest $1,400,000 (Chapter 13: Ability to meet nennGhage roo 7 Interest obligations) Deed arIcy Coat Accounts Receivable Turnover Net Credit Sales (Chapter 7: Frequency of ore =e 4.88 Ca ee Average Net Accounts Receivable $725,000 ‘tpolicies) Inventory Turnover (Chapter 8: Frequency of inventory Cost of Goods Sold $1,160,000_ sg rotation; to monitor inventory ‘Average Inventory $200,000 management) ESFINANCIAL ANALYSIS ANDTHE STATEMENT OF CASH FLOWS | 403 BCT ai ry Coat Net Profit on Sales (Chapter 5:Proftabilty on Net income are sales; for comparison and Net Sales $3,250,000 trend analysis) Gross Profit Margin (Chapter 5: Gross prof- Gross Profit $2,090,000 _ gy, itrate; for comparison and Net Sales $3,250,000 ‘rend analysis) Return on Assets Net Interest & $1,100,000 eae let Income + Interest Expense 100.000 55, utilization in ‘Average Assets $3,865,000 producing returns) Return on Equity (Chapter 15: Effectiveness of Net Income - Preferred Dividends $1,000,000 _ gay ‘equity investment “Average Common Equity $2,095,000 in producing returns) Cea reed nr) Cea ner EPS (Chapter 15: Amount of Income Available to Common $1,000000_ 4, 4, earnings attributableto each Weighted-Average Number of Common Shares 905,000, share of common stock) PIE (Chapter 15:The price of the Market Price Pes Share a; stock in relation to earnings Earnings Per Share $1 peer share) Dividend Rate/Yield (Chapter 15: Direct yield to pesrenelceshbaiende — 80.055 a. s5% investors through Market Price Per Share $10 dividend payments) Dividend Payout Ratio (Chapter 15: Proportion of ‘Annual Cash Dividend $0055 _ oy, ‘earnings distributed Earnings Per Share suit as dividends) Book Value (Chapter 15: The amount See _, $2610.00 59 97 of stockholders equity per Common Shares Outstanding 970,000 ‘common share outstanding) SL