Please give me a complete answer. Calculate the following ratios for 2014 and 20
ID: 2473030 • Letter: P
Question
Please give me a complete answer.
Calculate the following ratios for 2014 and 2015. When data limitations prohibit computing averages, use year-end balances in your calculations.
Return on investment. (Since 2013 numbers are not presented do not use averages when calculating the ratios for 2014. Instead, use the number presented on the 2014 balance sheet. Round your answers to 2 decimal places. (i.e., .2345 should be entered as 23.45).)
Return on equity. (Since 2013 numbers are not presented do not use averages when calculating the ratios for 2014. Instead, use the number presented on the 2014 balance sheet. Round your answers to 2 decimal places. (i.e., .2345 should be entered as 23.45).)
Earnings per share. (Round your answers to 2 decimal places.)
Price-earnings ratio (market prices at the end of 2014 and 2015 were $6.03 and $4.79, respectively).(Round intermediate calculations and final answers to 2 decimal places.)
Book value per share of common stock. (Round your answers to 2 decimal places.)
Times interest earned. (Exclude extraordinary income in the calculation as they cannot be expected to recur and, therefore, will not be available to satisfy future interest payments. Round your answers to 2 decimal places.)
Accounts receivable turnover. (Since 2013 numbers are not presented do not use averages when calculating the ratios for 2014. Instead, use the number presented on the 2014 balance sheet. Round your answers to 2 decimal places.)
Inventory turnover. (Since 2013 numbers are not presented do not use averages when calculating the ratios for 2014. Instead, use the number presented on the 2014 balance sheet. Round your answers to 2 decimal places.)
Required The following financial statements apply to Robin Company 2015 Revenues Net sales Other revenues $210,100 $175,900 5,400 8,500 Total revenues 218,600 181,300 Expenses Cost of goods sold Selling expenses General and administrative expenses Interest expense Income tax expense 125,100 19,800 10,000 2,500 20,800 101,100 17,800 9,000 2,500 18,000 Total expenses 178,200 148,400 Earnings from continuing operations 40,400 3,000 32,900 before extraordinary items Extraordinary gain (net of $2,500 tax) Net income $ 43,400 $ 32,900 Assets Current assets Cash Marketable securities Accounts receivable Inventories Prepaid expenses $ 5,200 $ 6,700 2,700 31,600 95,200 2,600 2,700 36,700 100,600 3,600 148,800 106,900 21,900 138,800 106,900 Total current assets Plant and equipment (net) Intangibles Total assets Liabilities and Stockholders' Equity $277,600 $245,700 Liabilities Current liabilities Accounts payable Other $ 38,100 16,900 $ 55,200 15,000 Total current liabilities Bonds payable 55,000 64,900 70,200 65,900 Total liabilities 119,900 136,100 Stockholders' equity 114,400 43,300 114,400 (4,800) 157,700 109,600 $277,600 $245,700 Common stock (42,000 shares) Retained earnings Total stockholders' equity Total liabilities and stockholders' equityExplanation / Answer
Ratio Formula 2015 2014 a. Net margin Net income / Net sales x 100 20.66% 18.70% b. Return on Investment Net income / Total Assets x 100 16.59% 13.39% c. Return on equity Net income / Total Stockholders' Equity x 100 32.47% 30.02% d. Earnings per share Net income / Number of shares of common stock outstanding $ 1.03 $ 0.78 e.Price earnings ratio Market price of stock / EPS 4.65 7.73 f. Book value per share of common stock Total stockholders'Equity / Number of shares outstanding $ 3.75 $ 2.61 g. Times interest earned EBIT / Interest expense 25.48 times 21.36 times h. Working capital Current Assets - Current Liabilities $ 93,800 $ 68,600 i. Current ratio Current Assets / Current Liabilities 2.71 1.98 j. Quick ratio Current assets - inventories - prepaid expenses / Current liabilities 0.81 0.58 k.Accounts receivable turnover Net sales / Accounts receivable 6.15 times 5.57 times l. Inventory turnover Cost of goods sold / Inventory 1.28 times 1.06 times m. Debt to equity ratio Total liabilities / Total Stockholders' Equity 0.76 1.24 n. Debt to assets ratio Total liabilities / Total assets 43% 55%