ABC Corporation Comparative Balance Sheet (In Dollars) December 31, 2012, 2011,
ID: 1097983 • Letter: A
Question
ABC Corporation Comparative Balance Sheet (In Dollars)
December 31, 2012, 2011, 2010
December 31, 2012
December 31, 2011
December 31, 2010
Assets
Current Assets
Cash
300,000
350,000
350,000
Marketable securities
200,000
150,000
50,000
Accounts receivable
200,000
150,000
100,000
Inventory
500,000
450,000
500,000
Total Current Assets
1,200,000
1,100,000
1,000,000
Fixed Assets
1,000,000
900,000
850,000
Total Assets
2,200,000
2,000,000
1,850,000
Liabilities
Current Liabilities
554,000
500,000
520,000
Long-term Liabilities
800,000
750,000
700,000
Total Liabilities
1,354,000
1,250,000
1,220,000
Stockholders
December 31, 2012
December 31, 2011
December 31, 2010
Assets
Current Assets
Cash
300,000
350,000
350,000
Marketable securities
200,000
150,000
50,000
Accounts receivable
200,000
150,000
100,000
Inventory
500,000
450,000
500,000
Total Current Assets
1,200,000
1,100,000
1,000,000
Fixed Assets
1,000,000
900,000
850,000
Total Assets
2,200,000
2,000,000
1,850,000
Liabilities
Current Liabilities
554,000
500,000
520,000
Long-term Liabilities
800,000
750,000
700,000
Total Liabilities
1,354,000
1,250,000
1,220,000
Stockholders
Explanation / Answer
2012 2011 2010 Sales $ 800,000.00 $ 1,020,000.00 $ 470,000.00 Less: Cost of Goods sold $ 500,000.00 $ 600,000.00 $ 250,000.00 Groos Profit $ 300,000.00 $ 420,000.00 $ 220,000.00 Less: Operating Expense $ 120,000.00 $ 200,000.00 $ 120,000.00 EBIT $ 180,000.00 $ 220,000.00 $ 100,000.00 Less: Interest $ 20,000.00 $ 20,000.00 $ 10,000.00 EBT $ 160,000.00 $ 200,000.00 $ 90,000.00 Less: Tax @ 40% 64000.000 80000.000 36000.000 PAT $ 96,000.00 $ 120,000.00 $ 54,000.00 Dividend Payout@30% $ 28,800.00 $ 36,000.00 $ 16,200.00 Retained earning $ 67,200.00 $ 84,000.00 $ 37,800.00 No. of Share 40000 40000 40000 EPS $ 2.40 $ 3.00 $ 1.35 Market Price $ 9.75 $ 12.25 PE Ratio $ 4.06 $ 4.08 Total Current Assets $ 1,200,000.00 $ 1,100,000.00 $ 1,000,000.00 Total Current Liabilities $ 554,000.00 $ 500,000.00 $ 520,000.00 Current Ratio=CA/CL $ 2.17 $ 2.20 $ 1.92 Current Assts. Other than Stock $ 700,000.00 $ 650,000.00 $ 500,000.00 Liquid Liabilities $ 554,000.00 $ 500,000.00 $ 520,000.00 Quick Ratio= CA/CL 1.26 1.30 0.96 Debt 800000.00 750000.00 700000.00 Equity 846000.00 750000.00 630000.00 Debt Equity ratio 0.95 1.00 1.11 EBT 116000.00 140000.00 64000.00 Interest 20000.00 20000.00 10000.00 Times-interest-earned ratio 5.80 7.00 6.40 COGS 500000.00 600000.00 250000.00 Inventory 5225000.00 5225000.00 500000.00 Inventory Turnover ratio 0.10 0.11 0.50 Total Assets 2200000.00 2000000.00 1850000.00 Turnover 800000.00 1020000.00 470000.00 Assets Turnover 2.75 1.96 3.94 Profit margin on sales % 12.00 11.76 11.49 PAT 96000.00 120000.00 54000.00 Total Assets 2200000.00 2000000.00 1850000.00 ROA % 4.36 6.00 2.92 Equity 846000.00 750000.00 630000.00 Return on equity 11.35 16.00 8.57 Total Assets 2200000.00 2000000.00 1850000.00 Total Liability 1646000.00 1500000.00 1330000.00 NET ASSETS 554000.00 500000.00 520000.00 No. of Shares 40000.00 40000.00 40000.00 Book value per share 13.85 12.50 13.00 PE Ratio $ 4.06 $ 4.08 Average Debtors $ 250,000.00 $ 200,000.00 Sales $ 800,000.00 $ 1,020,000.00 No. of days a year 365 365 Collection period in days 114.1 71.6