1. Business
  2. Finance
  3. plankton company balance sheet as of dec 31 2017 in...

Question: plankton company balance sheet as of dec 31 2017 in...

Question details

Plankton Company Balance Sheet as of Dec 31, 2017 (in $)

Cash                             112,500            Accounts Payable                       150,000

Receivables                   336,000            Notes payable                              84,000

Inventories                    241,500            Other Current Liabilities          117,000

Total CA                      690,000             Total CL                                 351,000

                                                                 L-T debt                                   256,500

Net Fixed Assets           292,500             Common Equity                        375,000

Total Assets                  982,500      Total L+E               982,500

Plankton Company Income Statement (year ended Dec 31, 2017—in $)

Sales                                                                                                                 1,607,000

Cost of Goods Sold

            Materials                                  717,000

            Labor                                        453,000

            Heat, Light, and Power           68,000

            Indirect Labor                           113,000

            Depreciation                             41,500                                                1,392,000

Gross Profit                                                                                                       214,500

Selling Expenses                                                                                                  115,000

G&A Expenses                                                                                                      30,000

            EBIT                                                                                                          69,500

Interest Expense                                                                                                24,500

            EBT                                                                                                      45,000

Taxes (40%)                                                                                                       18,000

Net Income                                                                                                        27,000

Use the data above for the Plankton Company to calculate the following ratios:

The answers must be carried out to two decimal points.

Current ratio:

Quick ratio:

Inventory Turnover:

Total Assets Turnover:

Profit Margin:

ROA:

ROE:

ROIC:

Total Debt/Total Capital:

Using the DuPont Equation please calculate the ROE? Must show the calculation in order to get credit.

Solution by an expert tutor
Blurred Solution
This question has been solved
Subscribe to see this solution