Please make sure to have the work (formulas) for the answers. I do not understan
ID: 2437512 • Letter: P
Question
Please make sure to have the work (formulas) for the answers. I do not understand how to do this. All information I have is from these two papers. Equity Ratio: StockHolders Equity / Total assets (or total equities)
Parametric Technology Corporation is in the CADCAM/CAE industry and is the top supplier of software tools used to automate a manufacturing company. The following consolidated balance sheet and supplementary data are for Parametric for 2011: PARAMETRIC TECHNOLOGY CORPORATION Consolidated Balance Sheet September 30, 2011 (in thous ands) Assets Current Assets Cash and cash equivalents Accounts receivable, net of allowance for doubtfiul accounts of $3,902 Other current assets S 167,878 230,220 194,166 S 592,264 62,569 613,394 361.455 S 1,629,682 Total Current Assets Property and equipment, net Goodwill Other assets Total Assets Liabilities and Stockholders' Equity Current Liabilities Accounts payable and accrued expenses Accrued compensatiorn Deferred revenue Income taxes S 77,141 95,980 279,935 Total Current Liabilities Long-term labilities S 469,391 337,601 Stockholders' Equity Preferred stock, $0.01 par value; 5,000 shares authorized; none issued Common stock, $0.01 par vaue; 500,000 shares authorized; 116,937 (2015) and 115,826 (2014) shares issued Additional paid-in capital Accumulated deficit Accumulated other comprehensive oss 1,169 1,805,021 (918,736) (64.764) S 1,629,682 Total Liabilities and Stockholders' Equity plementary Data for 2011 (in millions) . Net income, $85,424. . Cost of goods sold, $356,768. Income before interest and taxes, S117,114. Net sales, $1,166,949 Total interest expense for the year, $3,310. Weighted-average number of shares outstanding, 117,579.Explanation / Answer
Ratio Formula Amount (In $) Calculated Ratio a Working Capital Current assets/Current liabilities 592264/469391 0.13 b Current Ratio Current assets/Current liabilities 592264/469391 0.13 c Net Income to average common shareholder's equity Net Income/shareholders Equity 85242/(1169+1805021-918736-64764) 0.10 d Accounts Receivable turnover Net Sales/Accounts Receivable 1166949/230220 5.07 e Number of days sales in accounts receivable (assume 365 days in 2015) 365/Accounts Receivable Ratio 365/5.07 71.99 f Times interest earned ratio Earnings before Interest and tax/Interest payable 117114/3310 35.38 g Equity Ratio Total Liabilities/Total Equity (469391+337601)/(1169+1805021-918736-64764) 0.98 h EPS of common stock Net Income/No of shares outstanding 85424/117579 0.73 i Net Income to net sales Net Income/Net Sales 85424/1166949 0.07 j Total asset turnover Net Sales/Total assets 1166949/1629682 0.72 k Acid Test ratio Current assets-Inventory-Prepaid Expenses/Current liabilities 592264/469391 1.26 Since we have only year end balance sheet, we would use the year end amount instead of average amount