ACC 400 Financial Performance Analysis and Industry Benchmarking of Westward Corporation
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ACC 400 Financial Performance Analysis and Industry Benchmarking of Westward Corporation ACC 400 FINAL EXAM The condensed financial statements of Westward Corporation for 2009 and 2008 are presented below. Westward Corporation Westward Corporation Balance Sheet Income Statement December 31, 2009 For the Year Ended December 31, 2009 Assets Revenues $2,000,000 Current assets Expenses Cash and temporary Cost of goods sold 1,080,000 investments $ 30,000 Selling and administrative Accounts receivable 70,000 Expenses 495,000 Inventories 120,000 Interest expense 30,000 Total current assets 220,000 Total expenses 1,605,000 Property, plant, and Income before income taxes 395,000 equipment (net) 780,000 Income tax expense 140,000 Total assets $1,000,000 Net income $ 255,000 Liabilities and Stockholders' Equity Current liabilities $ 80,000 Long - term liabilities 300,000 Common stockholders' equity 620,000 Total liabilities and stockholders' equity $1,000,000 Westward Corporation Westward Corporation Balance Sheet Income Statement December 31, 2008 For the Year Ended December 31, 2008 Assets Revenues $2,500,000 Current assets Expenses Cash and temporary Cost of goods sold 1,750,000 investments $ 40,000 Selling and administrative Accounts receivable 90,000Page 2
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Expenses 500,000 Inventories 150,000 Interest expense 30,000 Total current assets 280,000 Total expenses 2,280,000 Property, plant, and Income before income taxes 220,000 equipment (net) 800,000 Income tax expense 77,000 Total assets $1,080,000 Net income $ 143,000 Liabilities and Stockholders' Equity Current liabilities $ 140,000 Long - term liabilities 320,000 Common stockholders' equity 620,000 Total liabilities and stockholders' equity $1,080,000 Select data from fiscal year 2007 : Inventory: $100,000 Total assets: $900,000 Stockholders’ Equity: $540,000 I nstructions 1. Compute the following listed ratios for 2009 and 2008 showing supporting calculations. (5.2 points) a. Current ratio b. Debt to total Assets c. Times interest earned d. Inventory turnover e. Profit margin ratio f. Return on common stockholders' equity g. Return on assets Answer:Page 4
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ACC 400 Financial Performance Analysis and Industry Benchmarking of Westward Corporation ACC 400 FINAL EXAM The condensed financial statements of Westward Corporation for 2009 and 2008 are presented below. Westward Corporation Westward Corporation Balance Sheet Income Statement December 31, 2009 For the Year Ended December 31, 2009 Assets Revenues $2,000,000 Current assets Expenses Cash and temporary Cost of goods sold 1,080,000 investments $ 30,000 Selling and administrative Accounts receivable 70,000 Expenses 495,000 Inventories 120,000 Interest expense 30,000 Total current assets 220,000 Total expenses 1,605,000 Property, plant, and Income before income taxes 395,000 equipment (net) 780,000 Income tax expense 140,000 Total assets $1,000,000 Net income $ 255,000 Liabilities and Stockholders' Equity Current liabilities $ 80,000 Long - term liabilities 300,000 Common stockholders' equity 620,000 Total liabilities and stockholders' equity $1,000,000 Westward Corporation Westward Corporation Balance Sheet Income Statement December 31, 2008 For the Year Ended December 31, 2008 Assets Revenues $2,500,000 Current assets Expenses Cash and temporary Cost of goods sold 1,750,000 investments $ 40,000 Selling and administrative Accounts receivable 90,000 Expenses 500,000 Inventories 150,000 Interest expense 30,000 Total current assets 280,000 Total expenses 2,280,000 Property, plant, and Income before income taxes 220,000 equipment (net) 800,000 Income tax expense 77,000 Total assets $1,080,000 Net income $ 143,000 Liabilities and Stockholders' Equity Current liabilities $ 140,000 Long - term liabilities 320,000 Common stockholders' equity 620,000 Total liabilities and stockholders' equity $1,080,000 Select data from fiscal year 2007 : Inventory: $100,000 Total assets: $900,000 Stockholders’ Equity: $540,000 I nstructions 1. Compute the following listed ratios for 2009 and 2008 showing supporting calculations. (5.2 points) a. Current ratio b. Debt to total Assets c. Times interest earned d. Inventory turnover e. Profit margin ratio f. Return on common stockholders' equity g. Return on assets Answer: