Share
Explore BrainMass

Z Corp Ratio Analysis: Current, ROA, EPS, quick, debt, PE, dividend yield

(See attached file for full problem description)

---
Ratio Analysis

Z Corp.
Balance Sheet
12/31

2000 2001
Cash $ 100 $120
Accounts receivable 250 260
Inventory 400 500
Equipment (net) 550 620
Total assets 1300 1500
Accounts payable 300 350
Mortgage payable 500 500
Capital stock (100 Shares) 200 200
Retained earnings 300 450
Total equities 1300 1500

Z Corp.
Income statement
FYE 12/31/01

Sales $ 800
Cost of sales 300
Gross margin 500
Operating expenses 100
Operating income 400
Taxes 100
Net income $300

Market price per share: $12
Dividends paid: $150(total)

1. What is the working capital for 2001?

A. 620
B. 530
C. 410
D. Some other amount

2. What is the current ratio for 2001?

A. 2.51
B. 1.33
C. 2.00
D. Some other amount

3. What is the return on assets for 2001?

A. .2222
B. .1775
C. .2857
D. Some other amount

4. What is the return on equity for 2001?

A. .52
B. .75
C. .33
D. Some other amount

5. What is the earnings per share for 2001?

A. 3
B. 4
C. 5
D. Some other amount

6. What is the quick ratio for 2001?

A. 1.011
B. 1.086
C. 2.222
D. Some other amount

7. What is the debt ratio for 2001?

A. .2222
B. .1775
C. .2857
D. Some other amount

8. What is the price/earnings ratio for 2001?

A. 2
B. 3
C. 4
D. 5

9. What is the dividend yield for 2001?

A. .15
B. .125
C. .150
D. Some other amount

10. What is the operating margin ratio for 2001?

A. .25
B. .333
C. .125
D. Some other amount
---

Attachments

Solution Summary

The solution answers the questions and also provides a summary table of the computed ratios.

$2.19