Q13. Data for Barry Computer Company and its industry averages is as follows:
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WRITE MY ESSAYBalance Sheet | |||
Assets | ($ 000) | Liabilities & Equity | ($ 000) |
Cash | 77,500 | Accounts payable | 129,000 |
Accounts receivable | 336,000 | Notes payable | 84,000 |
Inventory | 241,500 | Other current liabilities | 117,000 |
Total current assets | 655,000 | Total current liabilities | 330,000 |
Fixed assets | 292,500 | Tong term debt | 256,500 |
Common equity | 361,000 | ||
Total Assets | 947,500 | Total Liabilities & Equity | 947,500 |
Income Statement | ||
($ 000) | ($ 000) | |
Sales | 1,607.5 | |
Cost of goods sold | ||
Materials | 717 | |
Labour | 453 | |
Heat, light, and power | 68 | |
Indirect labour | 113 | |
depreciation | 41.5 | 1,392.5 |
Gross profit | 215 | |
Selling expense | 115 | |
Genral and admin expenses | 30 | |
EBIT | 70 | |
Interest | 24.5 | |
EBT | 45.5 | |
Tax (40% of EBT) | 18.2 | |
Net profit | 27.3 |
RATIO | BARRY | INDUSTRY AVERAGE |
Current ratio | 2.0x | |
Days Sale Outstanding / average collection period | 35 days | |
Sales /inventory | 6.7x | |
Sales / total assets | 3.0x | |
Net Income / Sales | 1.2% | |
Net Income / total assets | 3.6% | |
Net Income / common equity | 9.0% | |
Total Debt / Total Assets | 60.0% |
*Calculation is based on a 360 day year.
Calculate the industry ratios for barry?
Q14. Here is data for allied food products for the year 2006.
Allied Food Products | |||
Balance Sheet | |||
For the year ended on 31 December 2006. | |||
Assets | (Rs. In Millions) | Liability & Equity | (Rs. In Millions) |
Cash and Marketable Securities | 10 | Total Current Liability | 310 |
Accounts Receivable | 375 | Long Term Bonds | 754 |
inventories | 615 | Total Debt | 1,064 |
Total Current Assets | 1,000 | ||
Common Stock | 170 | ||
Plant and Equipment | 1,000 | Retained Earnings | 766 |
Total Common Equity | 896 | ||
2,000 | 2,000 |
· Sales for the year 2006 were Rs. 3 Billion and they are expected to grow by 10% by 2007.
· long term debt and common stocks will remain content in 2007.
· The difference in the balance sheet belongs to retained earnings.
Prepare a projected balance sheet for Allied Food Products for the year 2007 using percentage of sales method?
Q15. Here is data for allied food products for the year 2006.
Allied Food Products | |
Income Statement | |
For the year ended on 31 December 2006. | |
(Rs. In Millions) | |
Sales | 3,000 |
Cost except depreciation | 2,616 |
Depreciation | 100 |
Total operating cost | 2716 |
EBIT | 284 |
Interest | 88 |
EBT | 196 |
Tax (40% of EBT) | 78 |
Net Income Available for Common shareholders | 118 |
Dividend (50 % of net profit) | 59 |
Addition to retained earnings | 59 |
· Sales for the year 2006 were Rs. 3 Billion and they are expected to grow by 10% by 2007.
· Depreciation and interest will remain content in 2007.
Prepare a projected income statement for Allied Food Products for the year 2007 using percentage of sales method?
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