Assignment

Assignment

Assignment | Scoring Table | Diagnosis

NOW IT'S YOUR TURN TO DETERMINE THE FINANCIAL HEALTH OF A COMPANY.

Ratios

Assets

Below are the Balance Sheet and Income Statement of a hypothetical publicly-traded company, Sportswear, Inc. Use the data provided to assess the financial health of the company by calculating the following ratios.

Assets	Current Year	Prior Year
Current assets	$8,950,000	$7,210,000
Inventory	760,000	640,000
Property, plant, and equipment	13,730,000	12,670,000
Total Assets	$23, 440,000	$20,520,000

Liabilities
Current liabilities	$2,480,000	$2,070,000
Long term liabilities	10,970,000	9,560,000
TOTAL LIABILITIES	$13,450,000	$11,630,000

Stockholders Equity
Retained earnings	$7,990,000	$6,890,000
Common stock (20,000 shares)	2,000,000	2,000,000
Total Stockholders Equity	$9,990,000	$8,890,000
Total Liabilities and Stockholders Equity	$23,440,000	$20,520,000

Income Statement		Current Year
Revenue (Sales)		$11,500,000
Expenses
Cost of goods sold	8,100,000
Salary expense	1,230,000
Rent expense	780,000
Interest expense	290,000
Total Expenses		$10,400,000
Net Income		$1,100,000