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Exercise 1: |
1. Inventory Turnover for 2009 |
Cost of Goods sold/Average Inventory |
750000/((160000+140000)/2)= |
5 |
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2. Times Interest earned in 2009 |
EBIT/Interest expense |
EBIT=XXX Income+Income tax XXXXXXX+XXXXXXXX expense |
TIE=(160000+60000+XXXXX)/XXXXX |
6.5 |
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3. XXX Debt XX Total XXXXXX XXXXX XXX 2009 XX |
LT Debt/Total Assets= |
340000/1200000= |
28&XX;#/td### |
Or |
Total debt/XXXXX XXXXXX= |
(XXXXXX+340000)/1200000= |
XX>#/td### |
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Or |
Av.XX Debt/XX.XXXXX Assets= |
((300000+340000)/X)/((XXXXXX+XXXXXXX)/X) |
0.XX |
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XX.XXXXX Debt/XX.XXXXXX |
((110000+XXXXXX+140000+340000)/X)/((XXXXXX+1200000)/X)= |
44.5&XX;#/td### |
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4.XXXXXXXXXXX turnover for 2009 XX |
XXX Credit XXXXX/Average XXXXXXXXXXX |
XXXXXXX/((XXXXXX+180000)/2)= |
8 |
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5. Return on assets for 2009 is: |
Net XXXXXX/(XXXXXXX total assets) |
160000/((800000+XXXXXXX)/2)= |
XX&XX;#/td### |
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XXXXXXXX:X |
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XXXX | Base Yr.2007 | XXXX | (XXXX-XXXX)/XXXX | 2009 | (2009-2007)/2007 | 2010 | (XXXX-XXXX)/2007 | compared to XXXX |
Net XXXXX | 500000 | XXXXXX | XX>#/td### | XXXXXX | XX&XX;#/td### | XXXXXX | 60&XX;#/td### | Favourable | Revenue increasing |
XXXX XX XXXXX XXXX | XXXXXX | 420000 | 5>#/td### | 500000 | 25&XX;#/td### | XXXXXX | 40&XX;#/td### | XXXXXXXXXXXX | XXXX increasing |
Gross XXXXXX | 100000 | 130000 | XX&XX;#/td### | XXXXXX | 100&XX;#/td### | 240000 | XXX>#/td### | Favourable | Profit XXXXXXXXXX |
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