Posted: April 19th, 2016

# Calculate these liquidity ratios: current and quick ratios??

Modern Appliances Corporation has reported its financial results for the year ended December 31, 2011.
Modern Appliances Corporation
Income Statement for the Fiscal
Year Ended December 31, 2011
Net sales …………………………………………………… \$5,398,412,000
Cost of goods sold ………………………………………… 3,432,925,255
Gross profit ………………………………………………… \$1,965,486,745
Selling, general, and administrative expenses …………….. 1,036,311,231
Depreciation ………………………………………………. 299,928,155
Operating income …………………………………………. \$ 629,247,359
Interest expense …………………………………………… 35,826,000
EBT ……………………………………………………….. \$ 593,421,359
Income taxes ……………………………………………… 163,104,554
Net earnings ……………………………………………….. \$ 430,316,805

Using the information from the financial statements, complete a comprehensive ratio analysis for
Modern Appliances Corporation.
a. Calculate these liquidity ratios: current and quick ratios.
b. Calculate these efficiency ratios: inventory turnover, accounts receivable turnover, DSO.
c. Calculate these asset turnover ratios: total asset turnover, fixed asset turnover.
d. Calculate these leverage ratios: total debt ratio, debt-to-equity ratio, equity multiplier.
e. Calculate these coverage ratios: times interest earned, cash coverage.
f. Calculate these profitability ratios: gross profit margin, net profit margin, ROA, ROE.
g. Use the DuPont identity, and after calculating the component ratios, compute the ROE for this firm.

### Expert paper writers are just a few clicks away

Place an order in 3 easy steps. Takes less than 5 mins.

## Calculate the price of your order

You will get a personal manager and a discount.
We'll send you the first draft for approval by at
Total price:
\$0.00