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You are given the following information about XYZ
Corporation:
Account Name
Value
Accounts payable
5800
Accounts receivable
10600
Accumulated depreciation
34000
Cash
17550
Common stock (10,000 shares)
46000
Cost of goods sold
6,750
Depreciation expense
600
Earnings before taxes
?????
General & admin expense
950
Gross buildings & equipment
123000
Gross profits
26,250
Interest expense
4,300
Inventories
7500
Long-term debt
56000
Net buildings & equipment
89000
Net income
?????
Operating income (EBIT)
?????
Retained earnings
16150
Sales
33,000
Short-term notes payable
700
Taxes @40%
8,160
Required:
Using the
Data above, complete the following on the templates provided:
Part 1: Complete the Balance Sheet and Income Statement for
XYZ Corporation
Part 2:
Calculate the Ratios for XYZ Corporation
Part 3:
Complete the Ratio analysis using Cross-Sectional Analysis and
Trend
Analysis
Use this Templates for Part
1:
XYZ Corporation
Balance Sheet
As of December 31, 20XX
Assets
Current Assts
Total Current Assets
Total Assets
Liabilities and Equity
Liabilities
Total Current Liabilities
Total Liabilities
Equity
Total Equity
Total Liabilities and Equity
XYZ Corporation
Income Statement
For the year ending December 31, 20XX
Sales
Net Income
Use the Template below for Part Two:
Ratio
Formula
Your Answer
Operating Profit Margin After Taxes
Gross Profit Margin
Average Collection Period
Total Asset Turnover
Fixed Asset Turnover
Inventory Turnover
Debt to Total Assets
Times Interest Earned
Ratio
Company Year 1
Company Year 2
Industry Average
Cross Sectional Analysis
(% Difference)
Trend Analysis
(% Change)
Current Ratio
5x
3x
4x
Quick Ratio
3x
1.6x
3x
Total Asset Turnover
.4xx
.56x
.7x
Average Collection Period
130 days
110 days
100 days
Inventory Turnover
1.20x
1.41 x
2.2x
Fixed Asset Turnover
1.01x
1.20x
1.1x
Debt Ratio
30%
34%
33%
Times Interest Earned
4.0x
5.0x
6.0x
Return on Common Equity
8%
12%
10%
Summarize Your Findings Below:
You are given the following information about XYZ Corporation.docx

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