Final Financial Ratios for Management

8/13/2019 Final Financial Ratios for Management

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Doubts

MCC Other receivables Advances account

Visa income hw accounted - other payables

Expenses of Abudhabi MCC

Expenses incured for the new outlets ( not yet started )

Expenses incurred in the past - no work started - how much - under what Head



of account it is included



GRAND HYPER MARKET

Net Fixed Assets

Fixed Assets

Deferred Charges

Capital work in progress.

Deferred Expenses

Current Assets

Inventory

Due from Related Party

Security Deposits

Prepayments & Other Current Assets

Bank Guarantee

Other Receivables - Partners current ac

Quick Assets

Trade Receivable

Other Receivables

Loans & Advances

Cash Balance ( Incl Telecard )Bank Balance

Total Assets

Cross Verification with BS PL

3 FS 200



GRAND HYPER MARKET

Stockholders' Equity

Share Capital Account

Share holder's Current account

Reserves & Surplus

Retained Earnings

Legal Reserve

Total Liabilities

Long-term debt

Bank Borrowings & HP - Long term

Non Current Liabilities

Provision for Employee Gratuity

Deferred Income

Other Liabilities

Current Liabilities

Bank Borrowings & HP - Short Term

Trade PayableAccrued Expenses

Prov for Staff Airticket & Leave salary

Other Payables

Tenancy Deposits

Advances

Due to Related Parties

Equity +Total Liabilities

Fils diff

4 FS 200



CONSOLIDATED 2008 2007

Sales Revenue 117,197,224.75 88,045,152.44

Cost of Goods Sold 92,643,732.27 #REF!

Gross Profit 24,553,492.48 #REF!

Administrative Expenses 11,666,443.33 10,399,366.05

Employee Cost 4,892,773.27 4,460,277.12

General Administration 5,526,021.13 4,700,296.27

Finance Charges118,885.97 165,524.56

Depreciation 1,126,475.97 1,029,529.10

Provision for Bad Debts - 43,739.00

Bad Debts write off

Preliminary Expenses / Loss on

Sale of Fixed Assets2,286.99 -

Profit from Trading operations 12,887,049.15 #REF!

Other Operating Income 4,550,587.03 3,413,282.35

Profit from Operations 17,437,636.18 #REF!

Non - Operating income 1,157,577.35 1,348,874.30

Total Profit 18,595,213.53 #REF!

Less : Trsfr to Legal Reserve - -

Net Profit 18,595,213.53 #REF!



2008 2007 2008 2007

59,953,391.00 47,862,307.00 96,717,308.30 55,062,659.00

49,503,249.00 40,447,236.00 94,999,281.87 52,822,839.97

10,450,142.00 7,415,071.00 1,718,026.43 2,239,819.04

6,985,655.00 6,755,449.00 2,057,017.05 1,622,107.00

1,917,771.00 1,918,789.00 965,498.70 708,085.00

4,452,969.00 4,273,355.00 935,735.77 781,228.00

17,033.00 4,874.00 4,007.70 8,109.00

585,912.00 503,194.00 151,268.63 124,685.00

- -

11,970.00 55,237.00

- - 506.25 -

3,464,487.00 659,622.00 (338,990.62) 617,712.03

2,950,645.00 2,397,892.00 225,143.81 288,185.00

6,415,132.00 3,057,514.00 (113,846.81) 905,897.03

96,522.00 285,183.00 839,672.21 348,599.00

6,511,654.00 3,342,697.00 725,825.40 1,254,496.04

- - - (150,000.00)

6,511,654.00 3,342,697.00 725,825.40 1,104,496.04



2008 2007 2008 2007

12,195,466.57 9,539,190.00 37,244,613.67

10,161,819.02 7,923,344.62 29,588,064.89

2,033,647.55 1,615,845.38 7,656,548.78 -

856,025.54 692,978.00 5,473,340.85 -

417,776.79 299,063.00 1,671,369.85

353,835.17 334,031.00 3,324,912.88

- 2,780.00 1,587.00

39,873.58 37,534.00 323,402.00

44,540.00 19,570.00 -

152,069.12

1,177,622.01 922,867.38 2,183,207.93 -

- 582,964.78

1,177,622.01 922,867.38 2,766,172.71 -

452,933.78 621,745.00 1,858,592.15

1,630,555.79 1,544,612.38 4,624,764.86 -

- - - -

1,630,555.79 1,544,612.38 4,624,764.86 -



2008 2007 2008 2007

9,515,762.31 7,936,937.10 58,681,546.42 65,315,826.29

7,582,503.18 6,544,054.46 32,917,569.69 36,258,196.45

1,933,259.13 1,392,882.64 25,763,976.73 29,057,629.84

1,311,177.02 1,214,231.42 17,658,287.01 19,222,785.43

655,510.57 446,901.05 6,863,735.54 7,773,658.33

626,315.55 705,140.13 9,873,327.65 10,238,680.98

20,863.61 19,142.46

25,937.40 58,779.73 900,360.21 1,087,986.87

3,413.50 3,410.51 - 103,316.79

622,082.11 178,651.22 8,105,689.72 9,834,844.41

287,583.65 259,878.96

909,665.76 438,530.18 8,105,689.72 9,834,844.41

235,632.13 216,757.52 591,903.93 1,042,475.46

1,145,297.89 655,287.70 8,697,593.65 10,877,319.87

- - - -

1,145,297.89 655,287.70 8,697,593.65 10,877,319.87



2008 2007 2008 2007

23,422,064.75 15,839,431.00

- -

23,422,064.75 15,839,431.00 - -

16,054,448.82 9,906,811.00 - -

178,931.50 137,304.00

14,193,141.13 8,921,738.00

1,682,376.19 847,769.00

7,367,615.93 5,932,620.00 - -

7,367,615.93 5,932,620.00 - -

751,345.95 385,384.00

8,118,961.88 6,318,004.00 - -

- - - -

8,118,961.88 6,318,004.00 - -



2008 2007

354,973,986.77 241,739,195.83

267,892,970.92 #REF!

87,081,015.85 #REF!

55,076,739.62 43,058,278.90

15,645,596.22 13,825,288.50

34,833,289.28 25,681,114.38

145,344.28 195,556.02

4,249,693.98 3,186,283.70

44,540.00 63,309.00

3,413.50 106,727.30

154,862.36 -

32,004,276.23 #REF!

5,646,279.27 3,961,346.31

37,650,555.50 #REF!

5,887,657.50 3,963,835.28

43,538,213.00 #REF!

- -

43,538,213.00 #REF!



2008 2007

PROFITABILITY RATIOS

Gross Profit Margin

Sales 117,197,224.75 88,045,152.44


The gross profit margin is: 20.95% #REF!

Operating Profit Margin

Operating profit 17,437,636.18 #REF!

Sales 117,197,224.75 88,045,152.44

The operating profit margin is: 14.88% #REF!

Net Profit Margin

Net Profits After Taxes 18,595,213.53 #REF!

Sales 117,197,224.75 88,045,152.44

The net profit margin is: 15.87% #REF!

Return on Assets (ROA)


Total Assets 52,739,308.56 34,092,734.01

The return on assets is: 35.26% #REF!

Return on Equity (ROE)


Stockholders' Equity 42,209,334.13 23,614,120.61

The return on equity is: 44.05% #REF!

Activity Ratios

Inventory Turnover


Inventory 5,765,175.63 4,835,553.46

No of times the inventory turned over 16.07 #REF!In terms of No. of days 22.78 #REF!

Average Collection Period

Accounts Receivable - -

Annual Sales 117,197,224.75 88,045,152.44

The average collection period is: - -

CONSOLIDATED

11 Financial Ratios- 2008



Average Payment Period

Accounts Payable 7,896,582.98 7,384,511.87


The average payment period ( Days ) 31.20 #REF!

Credit period enjoyed

Expense Ratios

Employee Cost

Employee Cost 4,892,773.27 4,460,277.12

Annual Sales 117,197,224.75 88,045,152.44

4.17% 5.07%

General administration

Administration expenses 5,526,021.13 4,700,296.27

Annual Sales 117,197,224.75 88,045,152.44

4.72% 5.34%

Liquidity Analysis Ratios

Net Working Capital

Current Assets 49,897,665.95 30,471,378.66

Current Liabilities 9,789,639.88 9,323,976.92

The net working capital is: 40,108,026 21,147,402

Current Ratio

Current Assets 49,897,666 30,471,379

Current Liabilities 9,789,640 9,323,977

The current ratio is: 5.10 3.27

Quick RatioQuick Assets 4,018,981 9,541,343

Current Liabilities 9,789,640 9,323,977

The quick ratio is: 0.41 1.02




Debt Ratios

Debt Ratio

Total Liabilities 10,529,974 10,478,613

Total Assets 52,739,309 34,092,734

The debt ratio is: 19.97% 30.74%

Debt-equity Ratio

Long-term debt 392,619 959,392

Stockholders' Equity 42,209,334 23,614,121

The debt-equity ratio is: 0.93% 4.06%

Fixed Asset Turnover

Sales 117,197,224.75 88,045,152.44

Net Fixed Assets 2,825,088.93 3,608,103.17

The fixed asset turnover is: 41.48 24.40

Total Asset Turnover

Sales 117,197,224.75 88,045,152.44

Total Assets 52,739,308.56 34,092,734.01

The total asset turnover is: 2.22 2.58

- -




2008 2007 2008 2007

59,953,391.00 47,862,307.00 96,717,308.30 55,062,659.00

49,503,249.00 40,447,236.00 94,999,281.87 52,822,839.97

17.43% 15.49% 1.78% 4.07%

6,415,132.00 3,057,514.00 (113,846.81) 905,897.03

59,953,391.00 47,862,307.00 96,717,308.30 55,062,659.00

10.70% 6.39% -0.12% 1.65%

6,511,654.00 3,342,697.00 725,825.40 1,104,496.04

59,953,391.00 47,862,307.00 96,717,308.30 55,062,659.00

10.86% 6.98% 0.75% 2.01%

6,511,654.00 3,342,697.00 725,825.40 1,104,496.04

19,492,019.00 13,040,154.00 21,029,544.26 17,120,235.43

33.41% 25.63% 3.45% 6.45%

6,511,654.00 3,342,697.00 725,825.40 1,104,496.04

12,236,085.00 5,724,431.00 6,253,012.34 5,527,187.00

53.22% 58.39% 11.61% 19.98%

49,503,249.00 40,447,236.00 94,999,281.87 52,822,839.97

3,794,650.00 3,108,605.00 8,960,410.73 7,384,093.00

13.05 13.01 10.60 7.15 28.06 28.13 34.52 51.16

- - 94,497.43 278,939.44

59,953,391.00 47,862,307.00 96,717,308.30 55,062,659.00

- - 0.35 1.82




5,537,212.00 4,494,317.00 10,694,511.32 9,341,524.56

49,503,249.00 40,447,236.00 94,999,281.87 52,822,839.97

40.94 40.67 41.20 64.73

1,917,771.00 1,918,789.00 965,498.70 708,085.00

59,953,391.00 47,862,307.00 96,717,308.30 55,062,659.00

3.20% 4.01% 1.00% 1.29%

4,452,969.00 4,273,355.00 935,735.77 781,228.00

59,953,391.00 47,862,307.00 96,717,308.30 55,062,659.00

7.43% 8.93% 0.97% 1.42%

18,660,589.00 11,885,239.00 20,554,879.02 16,629,346.93

6,944,429.00 7,022,266.00 14,665,374.27 11,564,084.09

11,716,160 4,862,973 5,889,505 5,065,263

18,660,589 11,885,239 20,554,879 16,629,347

6,944,429 7,022,266 14,665,374 11,564,084

2.69 1.69 1.40 1.44

4,271,099 5,502,635 1,085,758 884,131

6,944,429 7,022,266 14,665,374 11,564,084

0.62 0.78 0.07 0.08




7,255,934 7,315,723 14,776,532 11,593,048

19,492,019 13,040,154 21,029,544 17,120,235

37.23% 56.10% 70.27% 67.72%

0 0 0 0

12,236,085 5,724,431 6,253,012 5,527,187

0.00% 0.00% 0.00% 0.00%

59,953,391.00 47,862,307.00 96,717,308.30 55,062,659.00

822,927.00 1,137,479.00 474,015.44 486,231.00

72.85 42.08 204.04 113.24

59,953,391.00 47,862,307.00 96,717,308.30 55,062,659.00

19,492,019.00 13,040,154.00 21,029,544.26 17,120,235.43

3.08 3.67 4.60 3.22

- - - -




2008 2007 2008 2007

12,195,466.57 9,539,190.00 37,244,613.67 -

10,161,819.02 7,923,344.62 29,588,064.89 -

16.68% 16.94% 20.56% #DIV/0!

1,177,622.01 922,867.38 2,766,172.71 -

12,195,466.57 9,539,190.00 37,244,613.67 -

9.66% 9.67% 7.43% #DIV/0!

1,630,555.79 1,544,612.38 4,624,764.86 -

12,195,466.57 9,539,190.00 37,244,613.67 -

13.37% 16.19% 12.42% #DIV/0!

1,630,555.79 1,544,612.38 4,624,764.86 -

5,830,159.24 3,443,522.97 13,139,330.21 -

27.97% 44.86% 35.20% #DIV/0!

1,630,555.79 1,544,612.38 4,624,764.86 -

3,989,870.76 2,359,314.97 6,624,764.86 -

40.87% 65.47% 69.81% #DIV/0!

10,161,819.02 7,923,344.62 29,588,064.89 -

399,165.92 394,841.38 3,455,611.81 -

25.46 20.07 8.56 #DIV/0!14.38 18.24 33.52 #DIV/0!

1,360,563.43 885,310.91 - -

12,195,466.57 9,539,190.00 37,244,613.67 -

40.16 33.41 - #DIV/0!




668,134.82 352,442.00 4,063,174.22 -

10,161,819.02 7,923,344.62 29,588,064.89 -

24.06 16.28 39.41 #DIV/0!

417,776.79 299,063.00 1,671,369.85 -

12,195,466.57 9,539,190.00 37,244,613.67 -

3.43% 3.14% 4.49% #DIV/0!

353,835.17 334,031.00 3,324,912.88 -

12,195,466.57 9,539,190.00 37,244,613.67 -

2.90% 3.50% 8.93% #DIV/0!

5,750,090.54 3,357,330.69 11,272,928.85 -

1,754,368.48 1,041,038.00 6,377,352.16 -

3,995,722 2,316,293 4,895,577 0

5,750,091 3,357,331 11,272,929 0

1,754,368 1,041,038 6,377,352 0

3.28 3.22 1.77 #DIV/0!

2,579,669 1,880,740 4,055,884 0

1,754,368 1,041,038 6,377,352 0

1.47 1.81 0.64 #DIV/0!




1,840,288 1,084,208 6,514,565 0

5,830,159 3,443,523 13,139,330 0

31.56% 31.49% 49.58% #DIV/0!

0 0 0 0

3,989,871 2,359,315 6,624,765 0

0.00% 0.00% 0.00% #DIV/0!

12,195,466.57 9,539,190.00 37,244,613.67 -

80,068.70 86,192.28 1,713,908.75 -

152.31 110.67 21.73 #DIV/0!

12,195,466.57 9,539,190.00 37,244,613.67 0

5,830,159.24 3,443,522.97 13,139,330.21 0

2.09 2.77 2.83 #DIV/0!

- - - -




2008 2007 2008 2007

9,515,762.31 7,936,937.10 58,681,546.42 65,315,826.29

7,582,503.18 6,544,054.46 32,917,569.69 36,258,196.45

20.32% 17.55% 43.90% 44.49%

909,665.76 438,530.18 8,105,689.72 9,834,844.41

9,515,762.31 7,936,937.10 58,681,546.42 65,315,826.29

9.56% 5.53% 13.81% 15.06%

1,145,297.89 655,287.70 8,697,593.65 10,877,319.87

9,515,762.31 7,936,937.10 58,681,546.42 65,315,826.29

12.04% 8.26% 14.82% 16.65%

1,145,297.89 655,287.70 8,697,593.65 10,877,319.87

3,981,110.10 2,788,056.81 46,073,251.59 30,303,171.02

28.77% 23.50% 18.88% 35.89%

1,145,297.89 655,287.70 8,697,593.65 10,877,319.87

2,873,085.36 1,727,787.22 29,699,144.52 21,001,550.64

39.86% 37.93% 29.29% 51.79%

7,582,503.18 6,544,054.46 32,917,569.69 36,258,196.45

540,492.46 366,993.47 689,659.35 731,864.03

14.03 17.83 47.73 49.54 26.09 20.53 7.67 7.39

193,868.99 395,952.12 2,083,246.00 1,757,137.00

9,515,762.31 7,936,937.10 58,681,546.42 65,315,826.29

7.33 17.96 12.78 9.68




843,784.99 875,922.98 3,097,905.60 2,892,992.32

7,582,503.18 6,544,054.46 32,917,569.69 36,258,196.45

40.73 48.99 34.44 29.20

655,510.57 446,901.05 6,863,735.54 7,773,658.33

9,515,762.31 7,936,937.10 58,681,546.42 65,315,826.29

6.89% 5.63% 11.70% 11.90%

626,315.55 705,140.13 9,873,327.65 10,238,680.98

9,515,762.31 7,936,937.10 58,681,546.42 65,315,826.29

6.58% 8.88% 16.83% 15.68%

3,896,175.54 2,696,159.85 44,327,971.30 28,292,601.33

1,033,858.99 1,001,411.79 13,491,174.10 7,618,431.62

2,862,317 1,694,748 30,836,797 20,674,170

3,896,176 2,696,160 44,327,971 28,292,601

1,033,859 1,001,412 13,491,174 7,618,432

3.77 2.69 3.29 3.71

1,249,968 1,227,339 11,185,369 6,617,578

1,033,859 1,001,412 13,491,174 7,618,432

1.21 1.23 0.83 0.87




1,108,025 1,060,269 16,374,107 9,301,621

3,981,110 2,788,057 46,073,252 30,303,171

27.83% 38.03% 35.54% 30.70%

0 0 188,961 93,021

2,873,085 1,727,787 29,699,145 21,001,551

0.00% 0.00% 0.64% 0.44%

9,515,762.31 7,936,937.10 58,681,546.42 65,315,826.29

84,934.56 91,896.96 1,703,907.96 1,994,401.63

112.04 86.37 34.44 32.75

9,515,762.31 7,936,937.10 58,681,546.42 65,315,826.29

3,981,110.10 2,788,056.81 46,073,251.59 30,303,171.02

2.39 2.85 1.27 2.16

- - - -




2008 2007 2008 2007

23,422,064.75 15,839,431.00 - -

- - - -

100.00% 100.00% #DIV/0! #DIV/0!

7,367,615.93 5,932,620.00 - -

23,422,064.75 15,839,431.00 - -

31.46% 37.45% #DIV/0! #DIV/0!

8,118,961.88 6,318,004.00 - -

23,422,064.75 15,839,431.00 - -

34.66% 39.89% #DIV/0! #DIV/0!

8,118,961.88 6,318,004.00 - -

41,697,675.24 35,293,054.00 - -

19.47% 17.90% #DIV/0! #DIV/0!

8,118,961.88 6,318,004.00 - -

26,518,431.22 19,035,594.00 - -

30.62% 33.19% #DIV/0! #DIV/0!

- - - -

- - - -

#DIV/0! #DIV/0! #DIV/0! #DIV/0!

1,055,395.50 137,413.00 - -

23,422,064.75 15,839,431.00 - -

16.22 3.12 #DIV/0! #DIV/0!




752,729.41 713,955.00 - -

- - - -

#DIV/0! #DIV/0! #DIV/0! #DIV/0!

178,931.50 137,304.00 - -

23,422,064.75 15,839,431.00 - -

0.76% 0.87% #DIV/0! #DIV/0!

14,193,141.13 8,921,738.00 - -

23,422,064.75 15,839,431.00 - -

60.60% 56.33% #DIV/0! #DIV/0!

36,709,912.23 29,765,134.00 - -

7,879,107.25 4,124,075.00 - -

28,830,805 25,641,059 0 0

36,709,912 29,765,134 0 0

7,879,107 4,124,075 0 0

4.66 7.22 #DIV/0! #DIV/0!

5,391,906 10,946,205 0 0

7,879,107 4,124,075 0 0

0.68 2.65 #DIV/0! #DIV/0!




15,179,244 16,257,460 0 0

41,697,675 35,293,054 0 0

36.40% 46.06% #DIV/0! #DIV/0!

0 0 0 0

26,518,431 19,035,594 0 0

0.00% 0.00% #DIV/0! #DIV/0!

23,422,064.75 15,839,431.00 - -

4,986,119.96 5,527,920.00 - -

4.70 2.87 #DIV/0! #DIV/0!

23,422,064.75 15,839,431.00 0 0

41,697,675.24 35,293,054.00 0 0

0.56 0.45 #DIV/0! #DIV/0!

- - - -




2008 2007

354,973,986.77 241,739,195.83

267,892,970.92 #REF!

24.53% #REF!

37,650,555.50 #REF!

354,973,986.77 241,739,195.83

10.61% #REF!

43,538,213.00 #REF!

354,973,986.77 241,739,195.83

12.27% #REF!

43,538,213.00 #REF!

203,982,398.20 136,080,928.24

21.34% #REF!

43,538,213.00 #REF!

130,403,728.20 78,989,985.44

33.39% #REF!

267,892,970.92 #REF!

23,605,165.90 16,821,950.34

11.35 #REF!

4,787,571.35 3,454,752.47

354,973,986.77 241,739,195.83

4.86 5.14




33,554,035.34 26,055,665.73

267,892,970.92 #REF!

45.84 #REF!

15,645,596.22 13,825,288.50

354,973,986.77 241,739,195.83

4.41% 5.72%

34,833,289.28 25,681,114.38

354,973,986.77 241,739,195.83

9.81% 10.62%

191,070,212.43 123,097,190.46

61,935,304.13 41,695,283.42

129,134,908 81,401,907

191,070,212 123,097,190

61,935,304 41,695,283

3.08 2.95

191,070,212 123,097,190

61,935,304 41,695,283

3.08 2.95




73,578,670 57,090,943

203,982,398 136,080,928

36.07% 41.95%

581,580 1,052,413

130,403,728 78,989,985

0.45% 1.33%

354,973,986.77 241,739,195.83

12,690,971.30 12,932,224.04

27.97 18.69

354,973,986.77 241,739,195.83

203,982,398.20 136,080,928.24

1.74 1.78

- -




Profitability Ratios

Gross Profit Margin

Sales $3,074,000

Cost of Goods Sold $2,088,000

The gross profit margin is: 32.1%

Operating Profit Margin

Operating profit $418,000

Sales $3,074,000

The operating profit margin is: 13.6%

Net Profit Margin

Net Profits After Taxes $231,000

Sales $3,074,000

The net profit margin is: 7.5%

Return on Assets (ROA)


Total Assets $3,597,000

The return on assets is: 6.4%

Return on Equity (ROE)


Stockholders' Equity $1,954,000

The return on equity is: 11.8%

Earnings Per Share (EPS)

Earnings Available to Common Stockholders' $221,000

Common Shares Outstanding 76,262

The earnings per share are: $2.90

Price/Earnings (P/E) Ratio

Market Price per Share of Common Stock $32.25

Earnings Per Share $2.90

The price/earnings ratio is: 11.1

DESCRIPTION

Profitability ratios allow you to evaluate the firm's earnings withrespect to a given level of sales, a certain level of assets, theowners' investment, or share value.

File: 210250460.xls.ms_office Copyright © 1997 KMT Software, Inc. Printed: 2/9/2014



Liquidity Analysis and Ratios

Net Working CapitalCurrent Assets $1,223,000Current Liabilities $620,000

The net working capital is: $603,000

Current RatioCurrent Assets $1,223,000Current Liabilities $620,000

The current ratio is: 1.97

Quick RatioCurrent Assets $1,223,000Inventory $289,000

Current Liabilities $620,000

The quick ratio is: 1.51

DESCRIPTION

Liquidity refers to the ease with which a firm can pay its bills.The three basic measures of liquidity are net working capital,the current ratio, and the quick (acid-test) ratio.




Activity Ratios

Inventory Turnover

Cost of Goods Sold $2,088,000

Inventory $289,000

The inventory turnover is: 7.22

Average Collection Period

Accounts Receivable $503,000

Annual Sales $3,074,000

The average collection period is: 58.91

Fixed Asset Turnover

Sales $3,074,000

Net Fixed Assets $2,374,000

The fixed asset turnover is: 1.29

Total Asset Turnover

Sales $3,074,000


The total asset turnover is: 0.85

DESCRIPTION

Activity ratios are used to measure the speed at which various

accounts are converted into sales or cash.




Debt Ratios

Debt Ratio

Total Liabilities $1,643,000


The debt ratio is: 45.7%

Debt-equity Ratio

Long-term debt $1,023,000

Stockholders' Equity $1,954,000

The debt-equity ratio is: 52.4%

Times Interest Earned

Earnings Before Interest and Taxes $418,000

Interest Expense $93,000

The times interest earned ratio is: 4.5

Fixed-payment Coverage Ratio

Earnings Before Interest and Taxes $418,000

Interest Expense $93,000

Principal Payments $71,000

Lease Payments $35,000

Total Preferred Dividends $10,000

Tax Rate 29%

The fixed-payment coverage ratio is: 1.87

DESCRIPTION

The debt ratios measure the degree of indebtedness and thecompany's ability to pay debts.




Initial Investment

Cost of new asset $380,000Installation costs $20,000 After-tax proceeds from sale of old asset $280,000

Tax on sale of present machine $84,160Change in net working $17,000

The initial investment is: $221,160

DESCRIPTION

This worksheet calculates the initial investment -- the relevant

cash outflow required at time zero to implement a proposedlong-term investment.

Final Financial Ratios for Management

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