Calculate All Ratios Which Industry Figures Are Available Below Nederland And Compare Firm’s

 

The following are the financial statements for Nederland Consumer Products Company for the fiscal year ended September 30, 2011.

 

Nederland Consumer Products Company
Income Statement for the Fiscal Year
Ended September 30, 2011

Net sales

 

$

62,141

Cost of goods sold

  

26,906

Gross margin

 

$

35,235

Marketing, research, administrative exp.

  

15,715

Depreciation

  

776

Operating income(loss)

 

$

18,744

Interest expense

  

499

Earnings(loss) before income taxes

 

$

18,245

Income taxes

  

5,623

Net earnings(loss)

 

$

12,622

 

 

 

Nederland Consumer Products Company
Balance Sheet as of September 30, 2011

Assets:

 

Liabilities and Stockholder’s Equity:

Cash and marketable securities

 

$

6,807

 

Accounts payable

 

$

2,776

Investment securities

  

353

 

Accrued and other liabilities

  

7,780

Accounts receivable

  

3,288

 

Taxes payable

  

2,047

Total inventories

  

5,376

 

Debt due within one year

  

7,490

Deferred income taxes

  

882

     

Prepaid expenses & other receivables

  

1,991

     

Total current assets

 

$

18,697

 

Total current liabilities

 

$

20,093

Property, plant, and equip., at cost

  

30,215

 

Long-term debt

  

12,217

Less: Accumulated depreciation

  

9,653

 

Deferred income taxes

  

2,543

Net plant and equipment

 

$

20,562

 

Other non-current liabilities

  

3,504

Net goodwill & other intangible assets

  

23,970

 

Total liabilities

 

$

38,357

Other non-current assets

  

1,622

 

Convertible Class A preferred stock

  

1,696

     

Common stock

  

1,608

     

Retained earnings

  

23,190

     

Total stockholders’ equity (deficit)

 

$

26,494

Total assets

 

$

64,851

 

Total liabilities and stockholders’ equity

 

$

64,851

 

 

Calculate all the ratios, for which industry figures are available below, for Nederland and compare the firm’s ratios with the industry ratios. (Round current ratio, quick ratio, debt ratio, long term debt ratio answers to 2 decimal places, e.g. 12.25 and other answers to 1 decimal place, e.g.12.5 or 12.5%.)

 

  

Industry Average

   

Current Ratio

 

2.05

  

[removed]

times

Quick Ratio

 

0.78

  

[removed]

times

Gross margin

 

23.9

%

 

[removed]

%

Net profit margin

 

12.3

%

 

[removed]

%

Debt ratio

 

0.23

  

[removed]

times

Long-term debt to equity

 

0.98

  

[removed]

times

Interest coverage

 

5.62

  

[removed]

 

ROA

 

5.3

%

 

[removed]

%

ROE

 

18.8

%

 

[removed]

%

 

 

 

Answer

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