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Doubts

MCC

Other receivables
Advances account
Visa income hw accounted - other payables
Expenses of Abudhabi MCC
Expenses incured for the new outlets ( not yet started )
Expenses incurred in the past - no work started - how much - under what Head of account it

what Head of account it is included

GRAND HYPER MARKET


Net Fixed Assets
Fixed Assets

Deferred Charges
Capital work in progress
Misc. Expenses to the extent not written
off
Deferred Expenses

Current Assets
Inventory
Due from Related Party
Security Deposits
Prepayments & Other Current Assets
Bank Guarantee
Other Receivables - Partners current ac
Quick Assets
Trade Receivable
Other Receivables
Loans & Advances
Cash Balance ( Incl Telecard )
Bank Balance

Total Assets
Cross Verification with BS PL

FS 2008

GRAND HYPER MARKET


Stockholders' Equity
Share Capital Account
Share holder's Current account
Reserves & Surplus
Retained Earnings
Legal Reserve

Total Liabilities
Long-term debt
Bank Borrowings & HP - Long term
Non Current Liabilities
Provision for Employee Gratuity
Deferred Income
Other Liabilities

Current Liabilities
Bank Borrowings & HP - Short Term
Trade Payable
Accrued Expenses
Prov for Staff Airticket & Leave salary
Other Payables
Tenancy Deposits
Advances
Due to Related Parties

Equity +Total Liabilities


Fils diff

FS 2008

CONSOLIDATED
Sales Revenue
Cost of Goods Sold

2008

2007

117,197,224.75

88,045,152.44

92,643,732.27

#REF!

Gross Profit

24,553,492.48

#REF!

Administrative Expenses

11,666,443.33

10,399,366.05

Employee Cost

4,892,773.27

4,460,277.12

General Administration

5,526,021.13

4,700,296.27

118,885.97

165,524.56

1,126,475.97

1,029,529.10

Finance Charges
Depreciation
Provision for Bad Debts

43,739.00

Bad Debts write off


Preliminary Expenses / Loss on
Sale of Fixed Assets

Profit from Trading operations

2,286.99

12,887,049.15

Other Operating Income

4,550,587.03

Profit from Operations

17,437,636.18

Non - Operating income


Total Profit
Less : Trsfr to Legal Reserve

Net Profit

1,157,577.35

18,595,213.53

#REF!
3,413,282.35
#REF!
1,348,874.30

#REF!

18,595,213.53

#REF!

2008

2007

2008

2007

59,953,391.00

47,862,307.00

96,717,308.30

55,062,659.00

49,503,249.00

40,447,236.00

94,999,281.87

52,822,839.97

10,450,142.00

7,415,071.00

1,718,026.43

2,239,819.04

6,985,655.00

6,755,449.00

2,057,017.05

1,622,107.00

1,917,771.00

1,918,789.00

965,498.70

708,085.00

4,452,969.00

4,273,355.00

935,735.77

781,228.00

17,033.00

4,874.00

4,007.70

8,109.00

585,912.00

503,194.00

151,268.63

124,685.00

11,970.00
-

506.25

55,237.00
-

3,464,487.00

659,622.00

2,950,645.00

2,397,892.00

6,415,132.00

3,057,514.00

96,522.00

285,183.00

839,672.21

348,599.00

6,511,654.00

3,342,697.00

725,825.40

1,254,496.04

6,511,654.00

3,342,697.00

(338,990.62)
225,143.81
(113,846.81)

725,825.40

617,712.03
288,185.00
905,897.03

(150,000.00)

1,104,496.04

2008

2007

2008

2007

12,195,466.57

9,539,190.00

37,244,613.67

10,161,819.02

7,923,344.62

29,588,064.89

2,033,647.55

1,615,845.38

7,656,548.78

856,025.54

692,978.00

5,473,340.85

417,776.79

299,063.00

1,671,369.85

353,835.17

334,031.00

3,324,912.88

2,780.00

1,587.00

39,873.58

37,534.00

323,402.00

44,540.00

19,570.00

152,069.12

1,177,622.01

922,867.38

2,183,207.93
582,964.78

1,177,622.01

922,867.38

2,766,172.71

452,933.78

621,745.00

1,858,592.15

1,630,555.79

1,544,612.38

4,624,764.86

1,630,555.79

1,544,612.38

4,624,764.86

2008

2007

2008

2007

9,515,762.31

7,936,937.10

58,681,546.42

65,315,826.29

7,582,503.18

6,544,054.46

32,917,569.69

36,258,196.45

1,933,259.13

1,392,882.64

25,763,976.73

29,057,629.84

1,311,177.02

1,214,231.42

17,658,287.01

19,222,785.43

655,510.57

446,901.05

6,863,735.54

7,773,658.33

626,315.55

705,140.13

9,873,327.65

10,238,680.98

20,863.61

19,142.46

900,360.21

1,087,986.87

25,937.40

58,779.73

3,413.50

3,410.51

622,082.11

178,651.22

287,583.65

259,878.96

909,665.76

103,316.79

8,105,689.72

9,834,844.41

438,530.18

8,105,689.72

9,834,844.41

235,632.13

216,757.52

591,903.93

1,042,475.46

1,145,297.89

655,287.70

8,697,593.65

10,877,319.87

1,145,297.89

655,287.70

8,697,593.65

10,877,319.87

2008

2007

23,422,064.75
-

2008

2007

15,839,431.00
-

23,422,064.75

15,839,431.00

16,054,448.82

9,906,811.00

178,931.50

137,304.00

14,193,141.13

8,921,738.00

1,682,376.19

847,769.00

7,367,615.93

5,932,620.00

7,367,615.93

5,932,620.00

751,345.95

385,384.00

8,118,961.88

6,318,004.00

8,118,961.88

6,318,004.00

2008

2007

354,973,986.77

241,739,195.83

267,892,970.92

#REF!

87,081,015.85

#REF!

55,076,739.62

43,058,278.90

15,645,596.22

13,825,288.50

34,833,289.28

25,681,114.38

145,344.28

195,556.02

4,249,693.98

3,186,283.70

44,540.00

63,309.00

3,413.50

106,727.30

154,862.36

32,004,276.23
5,646,279.27
37,650,555.50
5,887,657.50

43,538,213.00

#REF!
3,961,346.31
#REF!
3,963,835.28

#REF!

43,538,213.00

#REF!

CONSOLIDATED

2008

2007

PROFITABILITY RATIOS
Gross Profit Margin
Sales
Cost of Goods Sold

117,197,224.75
92,643,732.27

The gross profit margin is:

20.95%

Operating Profit Margin


Operating profit
Sales

17,437,636.18
117,197,224.75

The operating profit margin is:

14.88%

Net Profit Margin


Net Profits After Taxes
Sales

18,595,213.53
117,197,224.75

The net profit margin is:

15.87%

Return on Assets (ROA)


Net Profits After Taxes
Total Assets

18,595,213.53
52,739,308.56

The return on assets is:

35.26%

Return on Equity (ROE)


Net Profits After Taxes
Stockholders' Equity

18,595,213.53
42,209,334.13

The return on equity is:

44.05%

Activity Ratios
Inventory Turnover
Cost of Goods Sold
Inventory

92,643,732.27
5,765,175.63

No of times the inventory turned over


In terms of No. of days
Average Collection Period
Accounts Receivable
Annual Sales

16.07
22.78

117,197,224.75

The average collection period is:

11

88,045,152.44
#REF!
#REF!

#REF!
88,045,152.44
#REF!

#REF!
88,045,152.44
#REF!

#REF!
34,092,734.01
#REF!

#REF!
23,614,120.61
#REF!

#REF!
4,835,553.46
#REF!
#REF!

88,045,152.44
-

Financial Ratios- 2008

Average Payment Period


Accounts Payable
Cost of Goods Sold

7,896,582.98
92,643,732.27

The average payment period ( Days )


Credit period enjoyed

31.20

7,384,511.87
#REF!
#REF!

Expense Ratios
Employee Cost
Employee Cost
Annual Sales

4,892,773.27
117,197,224.75
4.17%

4,460,277.12
88,045,152.44
5.07%

General administration
Administration expenses
Annual Sales

5,526,021.13
117,197,224.75
4.72%

4,700,296.27
88,045,152.44
5.34%

Liquidity Analysis Ratios


Net Working Capital
Current Assets
Current Liabilities
The net working capital is:
Current Ratio
Current Assets
Current Liabilities
The current ratio is:
Quick Ratio
Quick Assets
Current Liabilities
The quick ratio is:

12

49,897,665.95
9,789,639.88

30,471,378.66
9,323,976.92

40,108,026

21,147,402

49,897,666
9,789,640

30,471,379
9,323,977

5.10

3.27

4,018,981

9,541,343

9,789,640

9,323,977

0.41

1.02

Financial Ratios- 2008

Debt Ratios
Debt Ratio
Total Liabilities
Total Assets

10,529,974
52,739,309

The debt ratio is:

19.97%

Debt-equity Ratio
Long-term debt
Stockholders' Equity

392,619
42,209,334

The debt-equity ratio is:

0.93%

Fixed Asset Turnover


Sales
Net Fixed Assets
The fixed asset turnover is:
Total Asset Turnover
Sales
Total Assets
The total asset turnover is:

13

10,478,613
34,092,734
30.74%

959,392
23,614,121
4.06%

117,197,224.75
2,825,088.93

88,045,152.44
3,608,103.17

41.48

24.40

117,197,224.75
52,739,308.56

88,045,152.44
34,092,734.01

2.22

2.58

Financial Ratios- 2008

2008

2007

2008

2007

59,953,391.00
49,503,249.00

47,862,307.00
40,447,236.00

96,717,308.30
94,999,281.87

55,062,659.00
52,822,839.97

17.43%

6,415,132.00
59,953,391.00
10.70%

6,511,654.00
59,953,391.00
10.86%

6,511,654.00
19,492,019.00
33.41%

6,511,654.00
12,236,085.00
53.22%

15.49%

1.78%

3,057,514.00
47,862,307.00

(113,846.81)
96,717,308.30

6.39%

-0.12%

3,342,697.00
47,862,307.00

725,825.40
96,717,308.30

6.98%

0.75%

3,342,697.00
13,040,154.00

725,825.40
21,029,544.26

25.63%

3.45%

3,342,697.00
5,724,431.00

725,825.40
6,253,012.34

58.39%

11.61%

4.07%

905,897.03
55,062,659.00
1.65%

1,104,496.04
55,062,659.00
2.01%

1,104,496.04
17,120,235.43
6.45%

1,104,496.04
5,527,187.00
19.98%

49,503,249.00
3,794,650.00

40,447,236.00
3,108,605.00

94,999,281.87
8,960,410.73

52,822,839.97
7,384,093.00

13.05
28.06

13.01
28.13

10.60
34.52

7.15
51.16

59,953,391.00

47,862,307.00

94,497.43
96,717,308.30

278,939.44
55,062,659.00

0.35

1.82

14

Financial Ratios- 2008

5,537,212.00
49,503,249.00

4,494,317.00
40,447,236.00

10,694,511.32
94,999,281.87

9,341,524.56
52,822,839.97

40.94

40.67

41.20

64.73

1,917,771.00
59,953,391.00

1,918,789.00
47,862,307.00

965,498.70
96,717,308.30

708,085.00
55,062,659.00

3.20%

4,452,969.00
59,953,391.00
7.43%

4.01%

1.00%

4,273,355.00
47,862,307.00

935,735.77
96,717,308.30

8.93%

0.97%

1.29%

781,228.00
55,062,659.00
1.42%

18,660,589.00
6,944,429.00

11,885,239.00
7,022,266.00

20,554,879.02
14,665,374.27

16,629,346.93
11,564,084.09

11,716,160

4,862,973

5,889,505

5,065,263

18,660,589
6,944,429

11,885,239
7,022,266

20,554,879
14,665,374

16,629,347
11,564,084

2.69

1.69

1.40

1.44

4,271,099

5,502,635

1,085,758

884,131

6,944,429

7,022,266

14,665,374

11,564,084

0.62

0.78

0.07

0.08

15

Financial Ratios- 2008

7,255,934
19,492,019
37.23%

0
12,236,085
0.00%

7,315,723
13,040,154

14,776,532
21,029,544

56.10%

70.27%

0
5,724,431

0
6,253,012

0.00%

0.00%

11,593,048
17,120,235
67.72%

0
5,527,187
0.00%

59,953,391.00
822,927.00

47,862,307.00
1,137,479.00

96,717,308.30
474,015.44

55,062,659.00
486,231.00

72.85

42.08

204.04

113.24

59,953,391.00
19,492,019.00

47,862,307.00
13,040,154.00

96,717,308.30
21,029,544.26

55,062,659.00
17,120,235.43

3.08

3.67

4.60

3.22

16

Financial Ratios- 2008

2008

2007

12,195,466.57
10,161,819.02
16.68%

1,177,622.01
12,195,466.57
9.66%

1,630,555.79
12,195,466.57
13.37%

1,630,555.79
5,830,159.24
27.97%

1,630,555.79
3,989,870.76
40.87%

2008

9,539,190.00
7,923,344.62

2007

37,244,613.67
29,588,064.89

16.94%

20.56%

922,867.38
9,539,190.00

#DIV/0!

2,766,172.71
37,244,613.67

9.67%

7.43%

1,544,612.38
9,539,190.00

#DIV/0!

4,624,764.86
37,244,613.67

16.19%

12.42%

1,544,612.38
3,443,522.97

#DIV/0!

4,624,764.86
13,139,330.21

44.86%

35.20%

1,544,612.38
2,359,314.97

#DIV/0!

4,624,764.86
6,624,764.86

65.47%

69.81%

10,161,819.02
399,165.92

7,923,344.62
394,841.38

29,588,064.89
3,455,611.81

25.46
14.38

20.07
18.24

8.56
33.52

1,360,563.43
12,195,466.57

885,310.91
9,539,190.00

37,244,613.67

40.16

33.41

17

#DIV/0!

#DIV/0!
#DIV/0!

#DIV/0!

Financial Ratios- 2008

668,134.82
10,161,819.02

352,442.00
7,923,344.62

4,063,174.22
29,588,064.89

24.06

16.28

39.41

417,776.79
12,195,466.57

299,063.00
9,539,190.00

1,671,369.85
37,244,613.67

3.43%

353,835.17
12,195,466.57
2.90%

3.14%

4.49%

334,031.00
9,539,190.00

#DIV/0!

#DIV/0!

3,324,912.88
37,244,613.67

3.50%

8.93%

#DIV/0!

5,750,090.54
1,754,368.48

3,357,330.69
1,041,038.00

11,272,928.85
6,377,352.16

3,995,722

2,316,293

4,895,577

5,750,091
1,754,368

3,357,331
1,041,038

11,272,929
6,377,352

0
0

3.28

3.22

1.77

2,579,669

1,880,740

4,055,884

1,754,368

1,041,038

6,377,352

1.47

1.81

0.64

18

#DIV/0!

#DIV/0!

Financial Ratios- 2008

1,840,288
5,830,159
31.56%

0
3,989,871
0.00%

1,084,208
3,443,523

6,514,565
13,139,330

31.49%

49.58%

0
2,359,315

0
0
#DIV/0!

0
6,624,765

0.00%

0.00%

12,195,466.57
80,068.70

9,539,190.00
86,192.28

37,244,613.67
1,713,908.75

152.31

110.67

21.73

12,195,466.57
5,830,159.24

9,539,190.00
3,443,522.97

37,244,613.67
13,139,330.21

2.09

2.77

2.83

19

0
0
#DIV/0!

#DIV/0!

0
0
#DIV/0!
-

Financial Ratios- 2008

2008

2007

9,515,762.31
7,582,503.18
20.32%

909,665.76
9,515,762.31
9.56%

1,145,297.89
9,515,762.31
12.04%

1,145,297.89
3,981,110.10
28.77%

1,145,297.89
2,873,085.36
39.86%

7,936,937.10
6,544,054.46
17.55%

2008

2007

58,681,546.42
32,917,569.69

65,315,826.29
36,258,196.45

43.90%

438,530.18
7,936,937.10

8,105,689.72
58,681,546.42

5.53%

13.81%

655,287.70
7,936,937.10

8,697,593.65
58,681,546.42

8.26%

14.82%

655,287.70
2,788,056.81

8,697,593.65
46,073,251.59

23.50%

18.88%

655,287.70
1,727,787.22

8,697,593.65
29,699,144.52

37.93%

29.29%

44.49%

9,834,844.41
65,315,826.29
15.06%

10,877,319.87
65,315,826.29
16.65%

10,877,319.87
30,303,171.02
35.89%

10,877,319.87
21,001,550.64
51.79%

7,582,503.18
540,492.46

6,544,054.46
366,993.47

32,917,569.69
689,659.35

36,258,196.45
731,864.03

14.03
26.09

17.83
20.53

47.73
7.67

49.54
7.39

193,868.99
9,515,762.31

395,952.12
7,936,937.10

2,083,246.00
58,681,546.42

1,757,137.00
65,315,826.29

7.33

17.96

12.78

9.68

20

Financial Ratios- 2008

843,784.99
7,582,503.18

875,922.98
6,544,054.46

3,097,905.60
32,917,569.69

2,892,992.32
36,258,196.45

40.73

48.99

34.44

29.20

655,510.57
9,515,762.31

446,901.05
7,936,937.10

6,863,735.54
58,681,546.42

7,773,658.33
65,315,826.29

6.89%

626,315.55
9,515,762.31
6.58%

5.63%

11.70%

705,140.13
7,936,937.10

9,873,327.65
58,681,546.42

8.88%

16.83%

11.90%

10,238,680.98
65,315,826.29
15.68%

3,896,175.54
1,033,858.99

2,696,159.85
1,001,411.79

44,327,971.30
13,491,174.10

28,292,601.33
7,618,431.62

2,862,317

1,694,748

30,836,797

20,674,170

3,896,176
1,033,859

2,696,160
1,001,412

44,327,971
13,491,174

28,292,601
7,618,432

3.77

2.69

3.29

3.71

1,249,968

1,227,339

11,185,369

6,617,578

1,033,859

1,001,412

13,491,174

7,618,432

1.21

1.23

0.83

0.87

21

Financial Ratios- 2008

1,108,025
3,981,110
27.83%

0
2,873,085
0.00%

1,060,269
2,788,057

16,374,107
46,073,252

38.03%

35.54%

0
1,727,787

188,961
29,699,145

0.00%

0.64%

9,301,621
30,303,171
30.70%

93,021
21,001,551
0.44%

9,515,762.31
84,934.56

7,936,937.10
91,896.96

58,681,546.42
1,703,907.96

65,315,826.29
1,994,401.63

112.04

86.37

34.44

32.75

9,515,762.31
3,981,110.10

7,936,937.10
2,788,056.81

58,681,546.42
46,073,251.59

65,315,826.29
30,303,171.02

2.39

2.85

1.27

2.16

22

Financial Ratios- 2008

2008

2007

23,422,064.75
-

15,839,431.00
-

100.00%

7,367,615.93
23,422,064.75
31.46%

8,118,961.88
23,422,064.75
34.66%

8,118,961.88
41,697,675.24
19.47%

8,118,961.88
26,518,431.22

2008

100.00%

#DIV/0!

5,932,620.00
15,839,431.00

1,055,395.50
23,422,064.75

137,413.00
15,839,431.00

16.22

3.12

#DIV/0!

#DIV/0!

6,318,004.00
19,035,594.00

#DIV/0!

17.90%

#DIV/0!

#DIV/0!

#DIV/0!

6,318,004.00
35,293,054.00

39.89%

#DIV/0!

#DIV/0!

6,318,004.00
15,839,431.00

33.19%

37.45%

30.62%

2007

#DIV/0!

#DIV/0!

#DIV/0!

#DIV/0!

#DIV/0!

#DIV/0!

23

#DIV/0!

Financial Ratios- 2008

752,729.41
-

713,955.00
-

#DIV/0!

#DIV/0!

178,931.50
23,422,064.75

137,304.00
15,839,431.00

0.76%

14,193,141.13
23,422,064.75
60.60%

#DIV/0!

#DIV/0!

0.87%

#DIV/0!

8,921,738.00
15,839,431.00

#DIV/0!

56.33%

#DIV/0!

#DIV/0!

36,709,912.23
7,879,107.25

29,765,134.00
4,124,075.00

28,830,805

25,641,059

36,709,912
7,879,107

29,765,134
4,124,075

0
0

0
0

4.66

7.22

5,391,906

10,946,205

7,879,107

4,124,075

0.68

2.65

#DIV/0!

#DIV/0!

24

#DIV/0!

#DIV/0!

Financial Ratios- 2008

15,179,244
41,697,675
36.40%

0
26,518,431
0.00%

16,257,460
35,293,054

0
0

46.06%

#DIV/0!

#DIV/0!

0
19,035,594

0
0

0.00%

23,422,064.75
4,986,119.96

15,839,431.00
5,527,920.00

4.70

2.87

23,422,064.75
41,697,675.24

15,839,431.00
35,293,054.00

0.56

0.45

0
0

#DIV/0!

0
0
#DIV/0!

#DIV/0!

#DIV/0!

0
0
#DIV/0!

#DIV/0!
-

25

0
0

Financial Ratios- 2008

2008

2007

354,973,986.77
267,892,970.92

241,739,195.83
#REF!

24.53%

#REF!

37,650,555.50
354,973,986.77

#REF!
241,739,195.83

10.61%

#REF!

43,538,213.00
354,973,986.77

#REF!
241,739,195.83

12.27%

#REF!

43,538,213.00
203,982,398.20

#REF!
136,080,928.24

21.34%

#REF!

43,538,213.00
130,403,728.20

#REF!
78,989,985.44

33.39%

#REF!

267,892,970.92
23,605,165.90

#REF!
16,821,950.34

11.35

#REF!

4,787,571.35
354,973,986.77

3,454,752.47
241,739,195.83

4.86

5.14

26

Financial Ratios- 2008

33,554,035.34
267,892,970.92

26,055,665.73
#REF!

45.84

#REF!

15,645,596.22
354,973,986.77

13,825,288.50
241,739,195.83

4.41%

5.72%

34,833,289.28
354,973,986.77

25,681,114.38
241,739,195.83

9.81%

10.62%

191,070,212.43
61,935,304.13

123,097,190.46
41,695,283.42

129,134,908

81,401,907

191,070,212
61,935,304

123,097,190
41,695,283

3.08

2.95

191,070,212

123,097,190

61,935,304

41,695,283

3.08

2.95

27

Financial Ratios- 2008

73,578,670
203,982,398

57,090,943
136,080,928

36.07%

41.95%

581,580
130,403,728

1,052,413
78,989,985

0.45%

1.33%

354,973,986.77
12,690,971.30

241,739,195.83
12,932,224.04

27.97

18.69

354,973,986.77
203,982,398.20

241,739,195.83
136,080,928.24

1.74

1.78

28

Financial Ratios- 2008

Profitability Ratios
Gross Profit Margin
Sales
Cost of Goods Sold

$3,074,000
$2,088,000
32.1%

The gross profit margin is:


Operating Profit Margin
Operating profit
Sales

$418,000
$3,074,000
13.6%

The operating profit margin is:


Net Profit Margin
Net Profits After Taxes
Sales

$231,000
$3,074,000
7.5%

The net profit margin is:


Return on Assets (ROA)
Net Profits After Taxes
Total Assets

$231,000
$3,597,000
6.4%

The return on assets is:


Return on Equity (ROE)
Net Profits After Taxes
Stockholders' Equity

$231,000
$1,954,000
11.8%

The return on equity is:


Earnings Per Share (EPS)
Earnings Available to Common Stockholders'
Common Shares Outstanding

$221,000
76,262
$2.90

The earnings per share are:


Price/Earnings (P/E) Ratio
Market Price per Share of Common Stock
Earnings Per Share

$32.25
$2.90

The price/earnings ratio is:

11.1

l
DESCRIPTION
Profitability ratios allow you to evaluate the firm's earnings with
respect to a given level of sales, a certain level of assets, the
owners' investment, or share value.

File: 210250460.xls.ms_office

Copyright 1997 KMT Software, Inc.

Printed: 2/9/2014

Liquidity Analysis and Ratios


Net Working Capital
Current Assets
Current Liabilities

$1,223,000
$620,000

The net working capital is:


Current Ratio
Current Assets
Current Liabilities

$603,000

$1,223,000
$620,000

The current ratio is:

1.97

Quick Ratio
Current Assets
Inventory
Current Liabilities

$1,223,000
$289,000
$620,000

The quick ratio is:

1.51

l
DESCRIPTION
Liquidity refers to the ease with which a firm can pay its bills.
The three basic measures of liquidity are net working capital,
the current ratio, and the quick (acid-test) ratio.

File: 210250460.xls.ms_office

Copyright 1997 KMT Software, Inc.

Printed: 2/9/2014

Activity Ratios
Inventory Turnover
Cost of Goods Sold
Inventory

$2,088,000
$289,000

The inventory turnover is:

7.22

Average Collection Period


Accounts Receivable
Annual Sales

$503,000
$3,074,000
58.91

The average collection period is:


Fixed Asset Turnover
Sales
Net Fixed Assets

$3,074,000
$2,374,000
1.29

The fixed asset turnover is:


Total Asset Turnover
Sales
Total Assets

$3,074,000
$3,597,000

The total asset turnover is:

0.85

l
DESCRIPTION
Activity ratios are used to measure the speed at which various
accounts are converted into sales or cash.

File: 210250460.xls.ms_office

Copyright 1997 KMT Software, Inc.

Printed: 2/9/2014

Debt Ratios
Debt Ratio
Total Liabilities
Total Assets

$1,643,000
$3,597,000
45.7%

The debt ratio is:


Debt-equity Ratio
Long-term debt
Stockholders' Equity

$1,023,000
$1,954,000
52.4%

The debt-equity ratio is:


Times Interest Earned
Earnings Before Interest and Taxes
Interest Expense

$418,000
$93,000

The times interest earned ratio is:

4.5

Fixed-payment Coverage Ratio


Earnings Before Interest and Taxes
Interest Expense
Principal Payments
Lease Payments
Total Preferred Dividends
Tax Rate

$418,000
$93,000
$71,000
$35,000
$10,000
29%

The fixed-payment coverage ratio is:

1.87

l
DESCRIPTION
The debt ratios measure the degree of indebtedness and the
company's ability to pay debts.

File: 210250460.xls.ms_office

Copyright 1997 KMT Software, Inc.

Printed: 2/9/2014

Initial Investment
Cost of new asset
Installation costs
After-tax proceeds from sale of old asset
Tax on sale of present machine
Change in net working

$380,000
$20,000
$280,000
$84,160
$17,000

The initial investment is:

$221,160

l
DESCRIPTION
This worksheet calculates the initial investment -- the relevant
cash outflow required at time zero to implement a proposed
long-term investment.

File: 210250460.xls.ms_office

Copyright 1997 KMT Software, Inc.

Printed: 2/9/2014