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    Ratio Analysis

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    Using the attached balance sheet and income statement forms, calculate the following ratios for ABC INC.

    1. Current ratio
    2. Return on sales
    3. Earnings per share
    4. Debt ratio
    5. Price earnings ratio

    --------
    Income Statement ABC INC

    View: Annual Data | Quarterly Data All numbers in thousands

    PERIOD ENDING 30-Apr-04 25-Apr-03 26-Apr-02
    Total Revenue 9,087,200   7,665,200   6,410,800  
    Cost of Revenue 2,252,900   1,890,300   1,652,700  

    Gross Profit 6,834,300   5,774,900   4,758,100  

    Operating Expenses
    Research Development 851,500   749,400   939,300  
    Selling General and Administrative 3,152,400   2,371,900   1,962,800  
    Non Recurring 36,300   116,700   290,800  
    Others -   -   -  

    Total Operating Expenses -   -   -  

    Operating Income or Loss 2,794,100   2,536,900   1,565,200  

    Income from Continuing Operations
    Total Other Income/Expenses Net 2,800   -148,400 -34,400
    Earnings Before Interest And Taxes 2,796,900   2,388,500   1,530,800  
    Interest Expense -   47,200   6,600  
    Income Before Tax 2,796,900   2,341,300   1,524,200  
    Income Tax Expense 837,600   741,500   540,200  
    Minority Interest -   -   -  

    Net Income From Continuing Ops 1,959,300   1,599,800   984,000  

    Non-recurring Events
    Discontinued Operations -   -   -  
    Extraordinary Items -   -   -  
    Effect Of Accounting Changes -   -   -  
    Other Items -   -   -  

    Net Income 1,959,300   1,599,800   984,000  
    Preferred Stock And Other Adjustments -   -   -  

    Net Income Applicable To Common Shares $1,959,300   $1,599,800   $984,000 
    --------
    Balance Sheet ABC Inc

    View: Annual Data | Quarterly Data All numbers in thousands

    PERIOD ENDING 30-Apr-04 25-Apr-03 26-Apr-02

    Assets
    Current Assets
    Cash And Cash Equivalents 1,593,700   1,470,100   410,700  
    Short Term Investments 333,800   22,700   123,000  
    Net Receivables 2,191,700   1,955,400   1,846,900  
    Inventory 877,700   942,400   748,100  
    Other Current Assets 315,800   214,900   359,300  

    Total Current Assets 5,312,700   4,605,500   3,488,000  
    Long Term Investments 1,456,300   594,000   637,000  
    Property Plant and Equipment 1,708,300   1,583,000   1,451,800  
    Goodwill 4,236,900   4,183,800   4,034,600  
    Intangible Assets 999,300   1,033,000   1,060,300  
    Accumulated Amortization -   -   -  
    Other Assets 397,300   321,500   232,800  
    Deferred Long Term Asset Charges -   -   -  

    Total Assets 14,110,800   12,320,800   10,904,500  

    Liabilities
    Current Liabilities
    Accounts Payable 1,882,400   1,428,000   1,468,800  
    Short/Current Long Term Debt 2,358,200   385,300   2,516,100  
    Other Current Liabilities -   -   -  

    Total Current Liabilities 4,240,600   1,813,300   3,984,900  
    Long Term Debt 1,100   1,980,300   9,500  
    Other Liabilities 383,900   316,500   245,200  
    Deferred Long Term Liability Charges 408,200   304,300   233,800  
    Minority Interest -   -   -  
    Negative Goodwill -   -   -  

    Total Liabilities 5,033,800   4,414,400   4,473,400  

    Stockholders' Equity
    Misc Stocks Options Warrants -   -   -  
    Redeemable Preferred Stock -   -   -  
    Preferred Stock -   -   -  
    Common Stock 120,900   121,800   121,500  
    Retained Earnings 8,890,900   7,808,400   6,493,000  
    Treasury Stock -   -   -  
    Capital Surplus -   -   -  
    Other Stockholder Equity 65,200   -23,800 -183,400

    Total Stockholder Equity 9,077,000   7,906,400   6,431,100  

    Net Tangible Assets $3,840,800   $2,689,600   $1,336,200  

    © BrainMass Inc. brainmass.com March 4, 2021, 6:23 pm ad1c9bdddf
    https://brainmass.com/business/price-to-earnings-ratio/ratio-analysis-43019

    Attachments

    Solution Summary

    Calculates Current ratio, Return on sales, Earnings per share, Debt ratio, Price earnings ratio.

    $2.49

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