Income Statement, 2015 Balance Sheet, 2015

Sales revenue 160,000 Assets:

Less: COGS (106,000) Cash
Gross profits 54,000 Marketable securities
Less: Operating expenses Account receivable
Selling expense (16,000) Inventories
G&A expneses (10,000) Total current assets
Lease expense (1,000) Land
Depreciation expense (10,000) Buildings and Equipment
Total Operating Expense (37,000) Less: Accumulated Depreciati
Operating profits 17,000 Net fixed assets
Less: Internet expense (6,100) Total Assets
Net profits before taxes 10,900
Less: Taxes (4,360) Liabilities and Stockholder's Equity:
Net profits after taxes 6,540 Account Payable
Notes Payable
Total current liabilities
Long-term debt
Common stock
Retained earnings
Total liabilities and stockhol

The firm’s 3,000

outstanding shares of
common stock closed
2015 at a price of $25
per share.
 Ratio Industry Average
Current ratio 1.8
500 Quick ratio 0.7
1,000 Inventory turnover 2.5
25,000 Average collection period 37,5 days
45,500 Debt ratio 65%
72,000 Times interest earned ratio 3.8
26,000 Gross profit margin 38%
90,000 Net profit margin 3.50%
(38,000) Return on total assets 4.00%
78,000 Return on common equity 9.50%
150,000 Market/book ratio 1.1

holder's Equity: book value 19.35

22,000
47,000
69,000
22,950
31,500
26,550
150,000
Actual 2014 Actual 2015 Formula
1.84 1.04 current asset/current liabilities
0.78 0.38 (current assets-inventory)/current liabilities
2.59 2.33 cost of goods sold/inventory
36,5 days 57.0 account receivables/(annual sales/365)
67% 61% total liabilities/total assets
4 2.8 ebit/interest, rumus ebit = sales revenue - cogs - operating exp
40% 33.8% gross profit/sales
3.60% 4.1% net income/sales
4.00% 4.4% net income/total assets
8.00% 11.3% net incom/total equity
1.2 1.3 market price per share of common stock/book value per share of comm
erating exp

per share of common stock, rumus book value = (common stock + r/e) / number of shares
Income Statement Balance Sheet
Sales revenue 10,000,000 Assets:
Less: Cost of goods sold (7,500,000) Cash
Gross profits 2,500,000 Marketable securities
Less: Operating expenses A/R
Selling expense 300,000 Inventories
G&A expense 650,000 Total Current Assets
Lease expense 50,000 Gross fixed assets (at cost)
Depreciation expense 200,000 Less: A/D
Total operating expense (1,200,000) Net fixed assets
Operating profits 1,300,000 Other assets
Less: Interest expense (200,000) Total Assets
Net profits before taxes 1,100,000
Less: Taxes (rate = 40%) (440,000) *Annual credit purchases of 6,200,000 wer
Net profits after taxes 660,000 *On Dec, the firm's common stock closed a
Less: Preferred stock dividends (50,000)
Earnings available for common stockholders 610,000
EPS 3.05
 Liabilties and Equities:
200,000 A/P 900,000
50,000 N/P 200,000
800,000 Accruals 100,000
950,000 Total current liabilities 1,200,000
2,000,000 LTD (includes financial leases) 3,000,000
12,000,000 Preffered stock (25000 shares, $2 dividend) 1,000,000
(3,000,000) Common stock (200000 shares at $3 par) 600,000
9,000,000 Paid in capital in excess of par value 5,200,000
1,000,000 Retained earnings 1,000,000
12,000,000 Total Equity 7,800,000
Total Liabilities and Equity 12,000,000
urchases of 6,200,000 were made during the year
m's common stock closed at $39,50 per share
Historical and Industry Average Ratios
Ratio Actual 2013 Actual 2014 Average 2015 Actual 2015
Current ratio 1.40 1.55 1.85 1.67
Quick ratio 1.00 0.92 1.05 0.88
Inventory turnover 9.52 9.21 8.60 7.89
Average collection period 45.6 36.9 35.5 29.20
Average payment period 59.3 61.6 46.3 52.98
Total asset turnover 0.74 0.80 0.74 0.83
Debt ratio 0.20 0.20 0.30 0.35
Times interest earned ratio 8.2 7.3 8.0 6.50
Fixed-payment coverage ratio 4.5 4.2 4.2 2.50
Gross profit margin 0.30 0.27 0.25 0.25
Operating profit margin 0.12 0.12 0.10 0.13
Net profit margin 0.062 0.062 0.053 0.06
ROA 0.045 0.050 0.040 0.05
ROE 0.061 0.067 0.066 0.08
EPS 1.75 2.20 1.50 3.05
P/E ratio 12.00 10.50 11.20 12.95
M/B ratio 1.20 1.05 1.01 1.16

book value 34
 Financial
Net Profit Total Asset
x = ROA (%) x Leverage = ROE(%)
Margin (%) Turnover
Multiplier
2013
Johnson 5.90% 2.11 12.45% 1.75 21.79%
Industry 5.40% 2.05 11.07% 1.67 18.49%
2014
Johnson 5.80% 2.18 12.64% 1.75 22.13%
Industry 4.70% 2.13 10.01% 1.69 16.92%
2015
Johnson 5.90% 2.34 13.81% 1.85 25.54%
Industry 4.10% 2.15 8.82% 1.64 14.46%