ABC Corporation Income Statement 201X 201Y 201z Cost of Goods Sold Gross Profit
ID: 2461578 • Letter: A
Question
ABC Corporation Income Statement 201X 201Y 201z Cost of Goods Sold Gross Profit Selling & Administerative Epxepnse Operating Profit (EBIT) Interest Expense Income Before Taxes Taxes Net Income Shares EPS 1,200,000 800,000 400,000 239,900 160,100 35,000 125,100 36,900 88,200 30,000 2.94 1,500,000 1,040,000 460,000 274,000 186,000 45,000 141,000 49,200 91,800 30,000 3.06 1,875,000 1,310,000 565,000 304,700 260,300 85,000 175,300 55,600 119,700 38,000 Balance Sheet 201X 201Y 2012 Assets Cash Marketable Securities Accounts Receivable Inventory Total Current Assets 30,000 20,000 170,000 230,000 450,000 40,000 25,000 259,000 261,000 585,000 30,000 30,000 360,000 290,000 710,000 650,000 765,000 1,390,000 Net Plant and Equipment 1,100,000 1,350,000 2,100,000Explanation / Answer
Comment -Gross Profit Ratio and Net profit ration is showing a slightly decreasing trend , though increasing in absolute value
Profitability Ratios 201x 201y 201z Gross Profit 4,00,000.00 4,60,000.00 5,65,000.00 Sales 12,00,000.00 15,00,000.00 18,75,000.00 Gross Pofit ratio 33% 31% 30% Net Profit 88,200.00 91,800.00 1,19,700.00 Sales 12,00,000.00 15,00,000.00 18,75,000.00 Net Pofit ratio 7.35% 6.12% 6.38% EPS 2.94 3.06 3.15Comment -Gross Profit Ratio and Net profit ration is showing a slightly decreasing trend , though increasing in absolute value
Asset Utilisation 201x 201y 201z Debtors 1,70,000.00 2,59,000.00 3,60,000.00 Sales 12,00,000.00 15,00,000.00 18,75,000.00 Debtors Turnover Ratio 7.06 5.79 5.21 Inventory 2,30,000.00 2,61,000.00 2,90,000.00 COGS 8,00,000.00 10,40,000.00 13,10,000.00 Inventory Turnover ratio 3.48 3.98 4.52 Fixed Asset 6,50,000.00 7,65,000.00 13,90,000.00 Sales 12,00,000.00 15,00,000.00 18,75,000.00 Fixed Assets Turnover ratio 1.85 1.96 1.35 Comment :Debtors Collection is showing a good trend, where inventory turnover has slowed down a bit and also there is a decrease in fixed asset turnover possibly due to expansion Note: Asset utilisation ratios are calculated on year end values. Liquidity 201x 201y 201z Current Assets 4,50,000.00 5,85,000.00 7,10,000.00 Currnet Laibilities 2,20,400.00 3,40,000.00 5,40,000.00 Current ratio 2.04 1.72 1.31 Quick Assets 2,20,000.00 3,24,000.00 4,20,000.00 Currnet Laibilities 2,20,400.00 3,40,000.00 5,40,000.00 Quick ratio 1.00 0.95 0.78 Note: Liquidity Ratios are showing a bad trend demanding a further analysis on the matter Debt Utilisation 201x 201y 201z Total Debt 5,45,400.00 7,03,600.00 12,43,900.00 Total Assets 11,00,000.00 13,50,000.00 21,00,000.00 Debt to Assets 0.50 0.52 0.59 The Company is pretty well leveraged.