Calculate each ratio for 2016 and 2015 from the annual report images provided; income statement, balance sheet, and cash flows. Show your work for both years.
The formulas are provided however for some such as the averages; there is additional formulas to find the averages that aren’t shown.
I provided a good portion of the formulas so it should be easier!!
Make sure each answer has which year/date it is for!
•Working Capital=Current Assets-Current Liabilities
•Current Ratio: Current Assets/Current Liabilities
•Acid Test: (Cash+Current Investments+Accounts Receivable)/Average Liabilities
•Receivable Turnover: Net Credit Sales/Average Accounts Receivable
•Average Collection Period: 365/ Receivable Turnover Rate
•Inventory Turnover Rate: Cost of Goods Sold/ Average Inventory
•Average Days in Inventory: 365/ Inventory Turnover Rate
•Debt to Equity: (Current + Longterm Liabilities)/Stockholders Equity
•Times Interest Earned: (Net Income+Interest Expense+Tax Expense)/ Interest Expense
•Profit Margin: Net Income/Net Sales
•Asset Turnover: Net Sales/ Average Total Assets
•Return on Assets: Net Income/Average Total Assets
•Return on Equity: Net Income/Average Stockholders Equity
•Price Earnings: Stock Price/ Earnings Per Share
•Stock Price: Total Stockholders Equity/ Average Shares of Common Stock Outstanding
•Earnings per Share: (Net Income-Preferred Stock Dividends)/ Average Shares of Common Stock Outstanding
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