Ratio and Break Even Analysis Worksheet

Save a copy of this document to your own computer, fill it in, save it again, and then submit it through the 5.2 Individual
Assignment Dropbox. See the instructions below the worksheet to learn how to save, fill in, and submit this document.
Calculation

Type of Ratio
LIQUIDITY RATIOS
Working Capital
Current Ratio
Acid-Test (quick) Ratio
Cash Ratio

$1,167,541 - $606,444 = $561,097

$1,167,541 / 606,444 = 1.9
$1,167,541 - $94,405 / $606,444 = $466,692
$134,147 - $606,444 = ($472,297)

Financial Statement(s) Used

Balance
Balance
Balance
Balance

Sheet
Sheet
Sheet
Sheet

ACTIVITY RATIOS
Accounts Receivable Turnover
Accounts Receivable Turnover in Days

Sales / Receivables
(sales / (receivables / 360)

Income Statement and Balance Sheet

Balance Sheet and Income Statement

Cost of Sales / Inventory

Inventory Turnover

(4)

Inventory Turnover in days

Accounts Payable Turnover

(3)

Income Statement and Balance Sheet

Inventory / (Cost of Sales / 360)

Accounts payable / Cost of Sales

Balance Sheet and Income Statement

Income Statement and Balance Sheet

Accounts payable / (Cost of Sales / 360)

(3)

Balance Sheet and Income Statement

Net Profit Margin

Gross Profit Margin
ROA (return on assets)
ROE (return on equity)

Net Income Before Taxes / Sales

Gross income / Sales
Net Income / Total Assets
Net Income / Total Equity

Payout Ratio

Dividends Paid / Net Income

Income Statement
Income Statement
Income Statement and Balance Sheet
Income Statement and Balance Sheet
Statement of Cash Flows and Income
Statement

Accounts Payable Turnover in days

PROFITABILITY RATIOS

DEBT RATIOS
Debt Ratio
Coverage Ratio

Total Liabilities / Total assets

Net Income + Interest Expense + Tax Expense /
Interest Expense

Balance Sheet
Income Statement

INSTRUCTIONS: Fill in the shaded cells on this worksheet. Non-shaded areas have been filled in for you already so that you can see
the type of information you are expected to supply in the shaded areas. Reference the Hershey Foods' financial statements to help
you locate which financial statement(s) contains the field(s) in which you can find the needed information.
In the "Calculation" cells, enter the fields and mathematical symbols associated with how the calculation is made. Note that the
slash (/) symbol represents the mathematical function of division. For example, in order to calculate the Inventory Turnover ratio, you
would use the Cost of Sales and the Inventory numbers found on the Income Statement and the Balance Sheet. You then would take
the Cost of Sales number and divide it by the Inventory number. The calculation would look like this: Cost of Sales/Inventory. The
slash (/) represents the division sign, so "Cost of Sales / Inventory" is the same as saying that the Cost of Sales [divided by]
Inventory is how you calculate the Inventory Turnover ratio.
In the "Financial Statement" cells, enter the name(s) of the financial statement(s) from which you would find the numbers you need
in order to complete the calculation. For example, enter "Income Statement and balance Sheet" because these are the two financial
statements on which you would find the "Cost of Sales" and "Inventory"numbers you need in order to calculate Inventory Turnover.
Save this file. To submit this completed Ratio and Break Even Analysis Worksheet, go to Dropbox in the course, and use the 5.2
Individual Assignment and upload your saved copy of this completed document to that assignment.