River Valley Production Inc. seeks to increase its market share and improve its results. The company takes as a starting point the current scenario and the results obtained in 2018 and 2019. Like other companies, River Valley uses financial ratios (ratios) as tools for analyzing the results obtained at the end of the period. Consider the data presented in the financial statements below and analyze the company's results based on the financial ratios. Balance Sheet 2018 2019 Cash $63,000 $201,000 Accounts Receivable 199,000 305,000 Marketable Securities 81,000 42,000 Inventories 441,000 455,000 Prepaids 5,000 9,000 Total Current Assets 789,000 1,012,000 Property, Plant, and Equipment, net 858,000 858,000 Total Assets $1,647,000 $1,870,000 Account Payable $150,000 $100,000 Accruals 101,000 95,000 Total Current Liabilities $251,000 $195,000 Bonds Payable 405,000 575,000 Total Liabilities 656,000 770,000 Common Stocks 700,000 700,000 Retained Earnings 291,000 400,000 Total Stockholders’ Equity 991,000 1,100,000 Total Liabilities & Equity $1,647,000 $1,870,000 Income Statement 2018 2019 Sales $1,855,000 $2,150,000 Cost of Goods Sold 823,000 985,000 Gross Profit 1,032,000 1,165,000 Selling, General & Admin. Exp. (SG&A) 520,000 438,000 Depreciation 75,000 150,000 Earnings before Interest and Taxes (EBIT) 437,000 577,000 Interest Expense 38,000 45,000 Earnings before Taxes (EBT) 399,000 532,000 Taxes (35%) 139,650 186,200 Net Income $259,350 $345,800
River Valley Production Inc. seeks to increase its market share and improve its results. The company takes as a starting point the current scenario and the results obtained in 2018 and 2019. Like other companies, River Valley uses financial ratios (ratios) as tools for analyzing the results obtained at the end of the period. Consider the data presented in the financial statements below and analyze the company's results based on the financial ratios.
|
Balance Sheet |
2018 |
2019 |
|
Cash |
$63,000 |
$201,000 |
|
Accounts Receivable |
199,000 |
305,000 |
|
Marketable Securities |
81,000 |
42,000 |
|
Inventories |
441,000 |
455,000 |
|
Prepaids |
5,000 |
9,000 |
|
Total Current Assets |
789,000 |
1,012,000 |
|
Property, Plant, and Equipment, net |
858,000 |
858,000 |
|
Total Assets |
$1,647,000 |
$1,870,000 |
|
|
|
|
|
Account Payable |
$150,000 |
$100,000 |
|
Accruals |
101,000 |
95,000 |
|
Total Current Liabilities |
$251,000 |
$195,000 |
|
Bonds Payable |
405,000 |
575,000 |
|
Total Liabilities |
656,000 |
770,000 |
|
|
|
|
|
Common Stocks |
700,000 |
700,000 |
|
Retained Earnings |
291,000 |
400,000 |
|
Total |
991,000 |
1,100,000 |
|
Total Liabilities & Equity |
$1,647,000 |
$1,870,000 |
|
Income Statement |
2018 |
2019 |
|
Sales |
$1,855,000 |
$2,150,000 |
|
Cost of Goods Sold |
823,000 |
985,000 |
|
Gross Profit |
1,032,000 |
1,165,000 |
|
Selling, General & Admin. Exp. (SG&A) |
520,000 |
438,000 |
|
Depreciation |
75,000 |
150,000 |
|
Earnings before Interest and Taxes (EBIT) |
437,000 |
577,000 |
|
Interest Expense |
38,000 |
45,000 |
|
Earnings before Taxes (EBT) |
399,000 |
532,000 |
|
Taxes (35%) |
139,650 |
186,200 |
|
Net Income |
$259,350 |
$345,800 |
|
Datos por acción |
2018 |
2019 |
|
Earning per Share (EPS) |
$1.25 |
$3.00 |
|
Cash Dividends |
$1.15 |
$2.10 |
|
Market Share (Price) |
$8.00 |
$11.00 |
|
Ratio Price/Earning (P/E) |
15.20 veces |
8.03 veces |
|
Outstanding Shares |
25,000 |
25,000 |
|
Razones financieras de la industria |
2019 |
|
Current Ratio |
8.3 veces |
|
Quick Ratio (Acid Test) |
8.1 veces |
|
Inventory Turnover Ratio |
7 |
|
Days Sales Outstanding (DSO) |
30 días |
|
Assets Turnover Ratio |
12 veces |
|
|
8.1 |
|
|
17.25% |
|
|
15.5% |
|
Profit Margin |
3.3% |
|
Debt/Equity Ratio |
50% |
|
Price /Earning Ratio (P/E) |
5.1 veces |
Please I need help determining the following:
1.4 Days Sales Outstanding (DSO)
1.5 Assets Turnover Ratio
1.6 Return on Assets (ROA)
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