QUESTION7 Partially correctMark 2.50 out of 3 lag question Ratios Compared with
ID: 2541152 • Letter: Q
Question
QUESTION7 Partially correctMark 2.50 out of 3 lag question Ratios Compared with Industry Averages Packard Plastics, Inc., manufactures various plastic and synthetic produ 2016 (Thousands of Dollars, Except Earnings per Share ucts. Financial statement data for the firm follow Cost of goods sold Net income Dividends Earnings per share $825,000 540,000 50,500 15,000 4.25 Packard Plastics, inc. Balance Sheets (Thousands of Dollars) Dec. 31, 2016 Dec. 31, 2015 Assets Cash Accounts receivable (net) Inventory $2,700 60,900 140.000 219.000203,600 194,000 $4,100 66,900 148,000 Total Current Assets Plant assets (net) 215,000Explanation / Answer
Median ratio for manufacture of plastic and synthetic product
ratio for packard plastic
1-
gross profit margin
gross profit/sales
285000/825000
32.70%
34.55%
gross profit
825000-540000
285000
sales
825000
2-
Dividend payout ratio
dividend paid/net income
15000/50500
29.70%
Median ratio for manufacture of plastic and synthetic product
ratio for packard plastic
1-
gross profit margin
gross profit/sales
285000/825000
32.70%
34.55%
gross profit
825000-540000
285000
sales
825000
2-
Dividend payout ratio
dividend paid/net income
15000/50500
29.70%