Financial Statement Analysis - Nickel & Dime Company
Not what you're looking for?
See the attached file.
The following information should be used and PLEASE PROVIDE formulas used:
Nickel & Dime Company
2006 Income Statement
($ in thousands)
Net sales $5,680
Less: Cost of goods sold 4,060
Less: Depreciation 420
Earnings before interest and taxes 1,200
Less: Interest paid 30
Taxable Income $1,170
Less: Taxes 410
Net income $ 760
Nickel & Dime Company
2005 and 2006 Balance Sheets
($ in thousands)
2005 2006 2005 2006
Cash $ 70 $ 180 Accounts payable $1,350 $1,170
Accounts rec. 980 840 Long-term debt 720 500
Inventory 1,560 1,990 Common stock 3,200 3,500
Total $2,610 $3,010 Retained earnings 940 1,200
Net fixed assets 3,600 3,360
Total assets $6,210 $6,370 Total liabilities & equity $6,210 $6,370
1. In 2006, how many days on average did it take Nickel & Dime Company to sell its inventory?
2. What is the debt-equity ratio for 2006?
3. What is the times-interest-earned ratio for 2006?
4. What is the equity multiplier for 2006?
5. What is the return on equity for 2006?
Purchase this Solution
Solution Summary
This solution is comprised of a detailed explanation to answer how many days on average did it take Nickel & Dime Company to sell its inventory, what is the debt-equity ratio for 2006, what is the times-interest-earned ratio for 2006, what is the equity multiplier for 2006, and what is the return on equity for 2006.
Solution Preview
See attached file.
The following information should be used and PLEASE PROVIDE formulas used:
Nickel & Dime Company
2006 Income Statement
($ in thousands)
Net sales $5,680
Less: Cost of goods sold 4,060
Less: Depreciation 420
Earnings before interest and taxes 1,200
Less: Interest paid 30
Taxable Income $1,170
Less: Taxes 410
Net income $ 760
Nickel & Dime Company
2005 and ...
Purchase this Solution
Free BrainMass Quizzes
Organizational Leadership Quiz
This quiz prepares a person to do well when it comes to studying organizational leadership in their studies.
Writing Business Plans
This quiz will test your understanding of how to write good business plans, the usual components of a good plan, purposes, terms, and writing style tips.
Understanding the Accounting Equation
These 10 questions help a new student of accounting to understand the basic premise of accounting and how it is applied to the business world.
Learning Lean
This quiz will help you understand the basic concepts of Lean.
Employee Orientation
Test your knowledge of employee orientation with this fun and informative quiz. This quiz is meant for beginner and advanced students as well as professionals already working in the HR field.