财务报表分析第10答案.docVIP

Exercise 1-2 (25 minutes) 20062005Sales 100.0%100.0%Cost of goods sold  66.0 52.4Gross profit 34.0%47.6%Operating expenses  21.0 19.4Net income  13.0% 28.2% Analysis and Interpretation: This situation appears to be unfavorable. Both cost of goods sold and operating expenses are taking a larger percent of each sales dollar in year 2006 compared to the prior year. Also, even though sales volume increased, net income both decreased in absolute terms and declined to only 13.0% of sales as compared to 28.2% in the year before. Exercise 1-3 (25 minutes) a. Current ratio: $30,800 + $88,500 + $111,500 + $9,700 $128,900 2006: = 1.9 to 1 $35,625 + $62,500 + $82,500 + $9,375 $75,250 2005: = 2.5 to 1 $36,800 + $49,200 + $53,000 + $4,000 $49,250 2004: = 2.9 to 1 b. Acid-test ratio: $30,800 + $88,500 $128,900 2006: = 0.9 to 1 $35,625 + $62,500 $75,250 2005: = 1.3 to 1 $36,800 + $49,200 $49,250 2004: = 1.7 to 1 Analysis and Interpretation: Mixons short-term liquidity position has weakened over this two-year period. Both the current and acid-test ratios show declining trends. Although we do not have information about the nature of the companys business, the acid-test ratio shift from ‘1.7 to 1’ down to ‘0.9 to 1’ and the current ratio shift from ‘2.9 to 1’ down to ‘1.9 to 1’ indicate a potential liquidity problem. Still, we must recognize that industry standards may show that the 2004 ratios were too high (instead of 2006 ratios as too low). Exercise 1-4 (20 minutes) Mixon Company Common-Size Comparative Balance Sheet December 31, 2004-20062006 2005* 2004*Cash  5.9%8.0%9.9%Accounts receivable, net 17.114.013.2Merchandise inventory 21.518.514.2Prepaid expenses 1.92.11.1Plant assets, net  53.6 57.3 61.6Total assets 100.0%100.0%100.0%Accounts payable 24.9%16.9%13.2%Long-term