BKM_9e_Chp014_Final.docxVIP

Chapter 14Financial Statement AnalysisInventory turnover ratio in 2012= = = 5.876Debtto equity ratio in 2012= = = 3.479Cash flow from operating activities in 2012Net income$ 410,000Adjustments to Net Income+ Depreciation280,000Change in AR30,000Change in inventory(10,000)Change in AP(110,000)CF from Operations$ 600,000Average collection period= 365 = 365 = 44.795Asset turnover ratio= = = 1.324Interest coverage ratio= = = 6.692Operating profit margin= = =.158 =15.8%Return on equity= = = .463 = 46.3%P/E ratioUnable to calculate as market price is not provided.Compound leverage ratio= = = 3