Given the profit loss (income statement) and balance sheet for Sam’s Sandwich Delivery (Table 4-8),.

Given the profit loss (income statement) and balance sheet for Sam's Sandwich Delivery (Table 4-8), answer the following:

a.          Calculate the following ratios: current, quick, accounts receivable turnover, fixed asset turnover.

b.         Using the inventory figure on the balance sheet as average inventory, calculate the inventory turnover ratio.

c.          Calculate the debt-to-equity ratio, debt-to-total asset ratio, and operating profit margin ratio.

d.         Perform a vertical analysis of the income statement.

e.          Perform a vertical analysis of the balance sheet.

f.          Based on your analysis, would you consider investing in Sam's Sandwich Delivery?

Table 4-8 Financial Statements for   Sam's Sandwich Delivery

Profit Loss (Income Statement) for Six Months Ending   06-30-2013

Revenues

Retail Sales

$68,283

Wholesale Sales

104,417

Total Revenues

$172,700

Cost of Sales

52,067

Gross Profit

$120,633

Total Operating Expenses

111,117

Operating Profit

$    9,516

Other Income/Expenses

Interest Income

41

Interest Expense

(651)

Depreciation-Store Equipment

(292)

Total Other Income/Expenses

(902)

Net Profit

$   8,614

Balance Sheet as of 06-30-2013

Assets

Current Assets

Change Fund

$       569

Cash in Bank-Checking

8,612

Cash in Bank-Savings

9,622

Accounts Receivable

6,843

Inventories

2,607

Total Current Assets

$ 28,253

Fixed Assets

Furniture and Fixtures

4,296

Less: Accum Depreciation

4,110

186

Equipment

68,293

Less: Accum Depreciation

67,725

568

Transportation Equipment

31,168

Less: Accum Depreciation

11,571

19,597

Total Fixed Assets

$ 20,351

Total Assets

$ 48,604

Current Liabilities

Accounts Payable Trade

6,208

Accrued Payroll Taxes

3,464

Accrued Sales Taxes

987

Total Current Liabilities

$ 10,659

Long-Term Liabilities

Auto Loans Payable

18,626

Total Long-Term Liabilities

$ 18,626

Total Liabilities

$ 29,285

Stockholder's Equity

Common Stock

83,081

Retained Earnings

(72,376)

Net Profit/Loss

8,614

Total Equity

19,319

Total Liabilities and Equity

$ 48,604

 

 

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