Answer To: PREFACEUliana Batih: Fall, KuleszaNote to the user:This Word document provides a structured...
Mayuri answered on Dec 05 2022
Solvency Analysis
Key instructions:
1) Input financial statement variables in blue cells only. Also input industry data for each ratio on each tab.
2) The financial statement variable input cells in BLUE are cell referenced to the respective ratios and subsequent analysis pages. You do not need to re-input the financial statement variables on subsequent tabs. Use the "Formulas" tab to "Trace Precedents" and "Trace Dependents" to see the links.
Financial statement variable Financial statement location Second Prior Year Prior Year Current Year Solvency ratios Prior year Current year Industry average Interpretation
Total assets Balance sheet (BS) $ 51,236 $ 70,851 $ 71,876 Debt ratio = Total liabilities / Total assets $ 0.95 $ 1.02 $ 2.59 For every $1 in total assets, the company owes 0.57.
Total liabilities BS $ 67,282 $ 73,572 Debt-to-equity ratio = Total Liabilities / Stockholders’ equity $ 20.39 $ (43.38) $ 2.74 For every $1 in stockholders' equity, the company owes 0.93.
Stockholders’ equity BS (3,116) 3,299 (1,696) Interest coverage ratio = Earnings before interest and taxes (EBIT) / Interest expenses 12.60 16.14 16.23 For every $1 in interest expense, the company earns30.31 times that amount.
Earnings before interest and taxes (EBIT), also labeled operating income Income statement (IS) 16,978 21,737 Complete your analysis on the Word template.
Interest expenses IS 1,347 1,347
Current assets BS 28,477 29,055
Current liabilities BS 23,166 28,693
Inventories BS 14,531 16,627 22,068
Cash and cash equivalents BS 7,895 2,343
Profit (after tax), also labeled net income after tax IS 12,866 16,433
Revenue, also labeled net sales or net revenue IS 132,110 151,157
Gross profit IS 44,853 50,832
Net accounts receivable BS 2,106 2,992 3,426
Cost of goods (services) sold IS 87,257 100,325
Days 365 365
Liquidity Analysis
Financial statement variable Financial statement location Second Prior Year Prior Year Current Year Liquidity ratios Prior...