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FIN - Modern Appliances Corporation

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Question;User's response: Modern Appliances Corporation has reported its financial result for the year ended December 31, 2008Income statement for the fiscal year ended December 31, 2008Net------------------------------------------- $5,398,412,000Cost of goods sold-----------------------------$3,432,925,255Gross profit-----------------------------------$1,965,486,745Selling, general, and administrative expenses--$1,036,311,231Depreciation-----------------------------------$299,928,155Operating Income-------------------------------$629,247,359Interest expense-------------------------------$35,826,000EBT -------------------------------------------$593,421,359Income taxes-----------------------------------$163,104,554Net earnings-----------------------------------$430,316,805Consolidated balance sheetModern Appliances CorporationDecember 31, 2008"ASSETS:Cash and cash equivalents $514,412,159Accounts receivable $1,046,612,233Inventories $981,870,990Other current asset $313,621,610Total current assets $2,856,516,992Net fixed Assets $754,660,275Goodwill $118, 407,710Other assets $665,058,761Total assets $4,394,643,738LIABILITY AND EQUITY:short-term borrowings $117,109,865Trade account payable $466,937,985other current liability $994,289,383Total current liability $1,578,337,233long term debt $1,200,691,565common stock $397,407,352Retained earnings $1,218,207,588Total liability equity $4,394,643,738"Using the information from the financial statements complete a comprehensive ratio analysis for modern appliances corporation.-Calculate these liquidity ratios: current and quick.-Calculate these efficiency ratios: inventory turnover, accounts receivable turnover DSO.-Calculate these assets turnover ratio: total asset turnover, fixed asset turnover.-Calculate these leverage ratios: total debt ratio, debt-to-equity ratio, equity multiplier-Calculate these coverage ratios: time interest earned, cash coverage.-Calculate these profitability ratios: gross profit margin, net profit margin, ROA, ROE.Use the DuPont identity, and after calculating the component ratios:, compute the ROE FOR THIS FIRM

 

Paper#48257 | Written in 18-Jul-2015

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