FIN 310 Great Basin College Werner and Stoner Financial Managing Excel Worksheet

Question Description

Create an Excel spreadsheet to organize your answers to the following problem, and submit your Excel file as an attachment by clicking on the appropriate button on this page.

A firm had the following abbreviated income statement for 2021 and abbreviated balance sheets at the end of 2020 and 2021.

2021
Sales $600,000
Less Cost of goods sold 320,000
Gross Profit 280,000
Less Operating expenses 190,000
Less Depreciation 30,000
Operating Income (EBIT) 60,000
Less Interest expense 20,000
Earnings Before Taxes (EBT) 40,000
Less Income tax 14,000
Earnings After Tax (Net Income) $26,000
2020 2021
Cash $13,000 $15,000
Marketable securities 41,000 40,000
Accounts receivable 22,000 25,000
Inventory 60,000 60,000
Prepaid expenses 11,000 20,000
Buildings (net) 620,000 600,000
Equipment (net) 109,000 100,000
Total Assets $876,000 $860,000
Accounts payable 20,000 40,000
Wages payable 5,000 3,000
Bonds payable 414,000 364,000
Total Liabilities 439,000 407,000
Common stock 200,000 200,000
Retained Earnings 237,000 253,000
Total Equity 437,000 453,000
Total Liabilities & Equity $876,000 $860,000

The company paid a dividend in 2021 of $10,000. All sales are made on account.

Required:

A. Calculate the current ratio at the end of 2021. _______________

B. Calculate the quick ratio at the end of 2021. ________________

C. Calculate the working capital at the end of 2021. _______________

D. Calculate average age of accounts receivable during 2021. _______________

E. Calculate the inventory turnover during 2021. _________________

F. Calculate the average age of accounts payable during 2021. _____________

G. Calculate the accounts receivable turnover during 2021. _____________

H. Calculate the pre-tax profit margin for 2021. ____________

I. Calculate the cash conversion cycle, in days during 2021. _____________

J. Calculate the debt/equity ratio at the end of 2021. ________________

K. Calculate the debt ratio at the end of 2021. ______________

L. Calculate the times interest earned ratio for 2021. _______________

M. Calculate the dividend payout ratio for 2021. _________________

N. Calculate the gross profit margin for 2021. _____________

O. Calculate the operating profit margin for 2021. ____________

P. Calculate the net profit margin for 2021. _______________

Q. Calculate the return on assets (ROA) for 2021. _________________

R. Calculate the total asset turnover during 2021. _______________

S. Calculate the return on equity (ROE for 2021. ______________

T. Calculate the marginal tax rate for 2021. _________________

Prof. Angela

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