Quiz no 2

Use the following selected financial information for Cascabel Corporation to answer
questions
Cascabel Corporation
Balance Sheet
December 31, 2015

Assets Liabilities and stockholders' equity

Current assets Current liabilities
Cash 2 Accounts payable 36
Short-term investments 10 Accrued liabilities 25
Accounts receivable 52 Total current liabilities 61

Inventory 57
Other current assets 8 Long-term debt 102
Total current assets 129 Total liabilities 163

Long-term assets Stockholders' equity

Net Plant 195 Common stock (10) 110
Retained earnings 51
Total stockholders' equity 161
Total assets 324 Total liabilities and equity 324

Cascabel Corporation
Income Statement
For the Year Ended December 31, 2015

Net sales 345

Cost of goods sold 248
Gross profit 97
Operating expenses 74
Operating profit 23
Interest expense 8
Earnings before taxes 15
Income tax expense 4
Net profit 11

Additional information: Market price of stock is Rs.25. Firm declared and paid
dividend 20% on par value of stock.
Compute following ratios:

Current ratio (2) Quick ratio (3)Debt ratio (4)Equity ratio (5)Inventory turnover in
days(use 360 days) (6) Receivable turnover in days(use 360 days) (7) Earnings per
share (8)Book value per share (9)Interest coverage ratio (10) Gross Profit margin
ratio
Q No.6

Belmont Industries

Balance Sheet

As at 31-Dec-01

Assets Liabilities & Equity

Cash $ 100,000 Current Liabilities

Receivables Long Term Debt

Inventory Total Debt

Plant Common Equity $ 600,000

Total Assets Total Claims

Current Ratio 2.5

Average Collection Period 54 days

Total Debt to Total Assets 40%

Total Asset Turnover 2

Inventory Turnover 5

Q No. 7

Illinois Paper Products

Balance Sheet
 As at 31-Dec-01

Assets Liabilities & Equity

Cash Current Liabilities

Receivables Long Term Debt

Inventory Total Debt $ 700,000

Plant Common Equity

Total Assets Total Claims

Total debt to Net Worth 1.4

Total Asset Turnover 3

Inventory Turnover 9

Average Collection Period 20 days

Current Ratio 3.3

Quick Ratio 1.3

 Q No.8 The Shannon Corporation has Sales of $750,000. Given the following ratios, fill in the
balance
sheet below:

Total asset turnover 2.5 times

Cash to total assets 2.0 percent
Accounts Receivable Turnover 10.0 times
Inventory turnover 15.0 times
Current Ratio 2.0 times
Debt to Total assets 45.0 percent
Q No.9 The following data are from the U Guessed it Company’s financial statements. This
company is a manufacturer of board games for young adults. The market is fiercely competitive,
therefore all sales ($20 million) for the year 1983 were on credit. Given the following ratios, fill in
the balance sheet below:

Sales to total assets 2 times

Total debt to assets 40%
Current Ratio 3.0 times
Inventory turnover 5.0 times
Average collection period 18 days
Fixed asset turnover 5.0 times
 Q No.10

Smolira Golf Corp.

Balance Sheet
As at 31-Dec-15
Assets Liabilities & Equity
Cash 100000 Current Liabilities
Receivables Long Term Debt
Inventory Total Debt 200000
Plant Common Equity
Total Assets Total Claims

Total Debt to Total Assets 0.25

Total Asset Turnover 1.5

Inventory Turnover 7

Average Collection Period 29 days

Current Ratio 2.25