Ratio Analysis

Selected data from the books of Joseph and Co. for the year ended 31 May 2014 Are as follows.

Sales $1 100 000

Cost of Goods sold $500 000

Other Expenses $228 000

Interest Expense $40 000

Income Tax Expense $36 000

Additional information:

(i) Cash dividend declared and paid was $50 000. The company only issued common

shares.

(ii) Common stock outstanding at the year's end was 84 000.

(iii) The current market price for Joseph's share is $16 per share.

What is the gross profit margin?

• 45.4%

• 54.5%

• 60%

• 40%

Selected data from the books of Joseph and Co. for the year ended 31 May 2014 Are as follows.

Sales $1 100 000

Cost of Goods sold $500 000

Other Expenses $228 000

Interest Expense $40 000

Income Tax Expense $36 000

Additional information:

(i) Cash dividend declared and paid was $50 000. The company only issued common

shares.

(ii) Common stock outstanding at the year's end was 84 000.

(iii) The current market price for Joseph's share is $16 per share.

What is the Times Interest Earned?

• 9.3 times

• 6.9 times

• 8.3 times

• 15 times

Selected data from the books of Joseph and Co. for the year ended 31 May 2014 Are as follows.

Sales $1 100 000

Cost of Goods sold $500 000

Other Expenses $228 000

Interest Expense $40 000

Income Tax Expense $36 000

Additional information:

(i) Cash dividend declared and paid was $50 000. The company only issued common

shares.

(ii) Common stock outstanding at the year's end was 84 000.

(iii) The current market price for Joseph's share is $16 per share.

The earnings per share is

• $4.42

• $3.95

• $3.29

• $7.14

Selected data from the books of Joseph and Co. for the year ended 31 May 2014 Are as follows.

Sales $1 100 000

Cost of Goods sold $500 000

Other Expenses $228 000

Interest Expense $40 000

Income Tax Expense $36 000

Additional information:

(i) Cash dividend declared and paid was $50 000. The company only issued common

shares.

(ii) Common stock outstanding at the year's end was 84 000.

(iii) The current market price for Joseph's share is $16 per share.

The price earnings ratio is

• 2.24 times

• 4.1 times

• 3.61 times

• 4.86 times

Selected data from the books of Joseph and Co. for the year ended 31 May 2014 Are as follows.

Sales $1 100 000

Cost of Goods sold $500 000

Other Expenses $228 000

Interest Expense $40 000

Income Tax Expense $36 000

Additional information:

(i) Cash dividend declared and paid was $50 000. The company only issued common

shares.

(ii) Common stock outstanding at the year's end was 84 000.

(iii) The current market price for Joseph's share is $16 per share.

Dividend payout is

• 7.5%

• 4.1%

• 9%

• 6.7%

The XYZ Corporation condensed Income Statement and Balance Sheet is given below:

Balance Sheet as at June 30 2013

Assets

Current assets

Cash $546.9

Accounts Receivable $624.8

Inventories $544.5

Prepayments $211.4

Total Current Assets $1 927.6

Property plant and equipment $580.7

Investments $30.3

Intangible and other assets $877.9

Total Assets $3 416.5

Liabilities and Stockholders' equity

Current liabilities $959.6

Long term liabilities $635.0

Stockholders' equity - common $1 821.9

Total liabilities and stockholders' equity $3 416.5

Income Statement For year ended June 30

Revenues $4 751.5

Costs & Expenses

Costs of Goods sold $1 273.5

selling and Administration expenses $3 133.6

Interest Expense $17.6

Total Costs and Expenses $4 424.6

Income before taxes $326.9

Income tax expense $114.4

Net Income $212.5

Calculate the current ratio

• 2.5:1

• 2.0:1

• 2.6:1

• 2.3:1

The XYZ Corporation condensed Income Statement and Balance Sheet is given below:

Balance Sheet as at June 30 2013

Assets

Current assets

Cash $546.9

Accounts Receivable $624.8

Inventories $544.5

Prepayments $211.4

Total Current Assets $1 927.6

Property plant and equipment $580.7

Investments $30.3

Intangible and other assets $877.9

Total Assets $3 416.5

Liabilities and Stockholders' equity

Current liabilities $959.6

Long term liabilities $635.0

Stockholders' equity - common $1 821.9

Total liabilities and stockholders' equity $3 416.5

Income Statement For year ended June 30

Revenues $4 751.5

Costs & Expenses

Costs of Goods sold $1 273.5

selling and Administration expenses $3 133.6

Interest Expense $17.6

Total Costs and Expenses $4 424.6

Income before taxes $326.9

Income tax expense $114.4

Net Income $212.5

Calculate the inventory turnover if the inventory at June 30, 2012 was $630.3

• 2.2 times

• 2.0 times

• 2.4 times

• 2.3 times

The XYZ Corporation condensed Income Statement and Balance Sheet is given below:

Balance Sheet as at June 30 2013

Assets

Current assets

Cash $546.9

Accounts Receivable $624.8

Inventories $544.5

Prepayments $211.4

Total Current Assets $1 927.6

Property plant and equipment $580.7

Investments $30.3

Intangible and other assets $877.9

Total Assets $3 416.5

Liabilities and Stockholders' equity

Current liabilities $959.6

Long term liabilities $635.0

Stockholders' equity - common $1 821.9

Total liabilities and stockholders' equity $3 416.5

Income Statement For year ended June 30

Revenues $4 751.5

Costs & Expenses

Costs of Goods sold $1 273.5

selling and Administration expenses $3 133.6

Interest Expense $17.6

Total Costs and Expenses $4 424.6

Income before taxes $326.9

Income tax expense $114.4

Net Income $212.5

What is the profit margin?

• 73.2%

• 26.8%

• 4.5%

• 6.8%

The XYZ Corporation condensed Income Statement and Balance Sheet is given below:

Balance Sheet as at June 30 2013

Assets

Current assets

Cash $546.9

Accounts Receivable $624.8

Inventories $544.5

Prepayments $211.4

Total Current Assets $1 927.6

Property plant and equipment $580.7

Investments $30.3

Intangible and other assets $877.9

Total Assets $3 416.5

Liabilities and Stockholders' equity

Current liabilities $959.6

Long term liabilities $635.0

Stockholders' equity - common $1 821.9

Total liabilities and stockholders' equity $3 416.5

Income Statement For year ended June 30

Revenues $4 751.5

Costs & Expenses

Costs of Goods sold $1 273.5

selling and Administration expenses $3 133.6

Interest Expense $17.6

Total Costs and Expenses $4 424.6

Income before taxes $326.9

Income tax expense $114.4

Net Income $212.5

What is the Return on assets?

• 11%

• 14.3%

• 12.0%

• 6.2%

The XYZ Corporation condensed Income Statement and Balance Sheet is given below:

Balance Sheet as at June 30 2013

Assets

Current assets

Cash $546.9

Accounts Receivable $624.8

Inventories $544.5

Prepayments $211.4

Total Current Assets $1 927.6

Property plant and equipment $580.7

Investments $30.3

Intangible and other assets $877.9

Total Assets $3 416.5

Liabilities and Stockholders' equity

Current liabilities $959.6

Long term liabilities $635.0

Stockholders' equity - common $1 821.9

Total liabilities and stockholders' equity $3 416.5

Income Statement For year ended June 30

Revenues $4 751.5

Costs & Expenses

Costs of Goods sold $1 273.5

selling and Administration expenses $3 133.6

Interest Expense $17.6

Total Costs and Expenses $4 424.6

Income before taxes $326.9

Income tax expense $114.4

Net Income $212.5

What is the return on common stockholders' equity?

• 11.7%

• 4.5%

• 6.2%

• 8.7%