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Ratio Analysis

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

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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 
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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  

Attachments

Solution Summary

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

$2.19