In this case study, the key ratios are calculated for you . ?You will also note that the final column on page 6-11 is the industr
In this case study, the key ratios are calculated for you . You will also note that the final column on page 6-11 is the industry standard.
Your case study report will be two to three pages in a Word document. In your response, please include the following.
- List at least two positive and two negative trends that you identify from the information provided.
- Describe why you are or not concerned about the dramatic rise in inventory.
- Based on the information available provide your assessment of why these trends are, or might be, occurring.
- How is the company performing financially compared to the industry standards?
- Provide a summary.
Sheet1
| Case study 4: Store container corporation | Store container corporation key ratios 200X-200Z | ||||||||
| Store container corporation balance sheet (millions of dollars) | Ratio | 200X | 200Y | 200Z | Industry | ||||
| December 31, | 200X | 200Y | 200Z | Liquidity | |||||
| Assets | CA/CL | 1.97× | 1.94× | 2.61× | 1.80× | ||||
| Cash and equivalent | $8,290 | $3,880 | $15,400 | Cash + receivables/CL | 0.80× | 0.80× | 1.27× | 0.90× | |
| Receivables | 123,860 | 127,950 | 243,140 | Receivables/working capital | 78.00% | 83.00% | 74.00% | 69.00% | |
| Inventories | 152,660 | 148,350 | 238,210 | Inventory/working capital | 96.00% | 96.00% | 73.00% | 72.00% | |
| Other current | 38,440 | 40,000 | 33,710 | Debt | |||||
| Total current | 323,250 | 320,180 | 530,460 | TL/equity | 241.07% | 242.80% | 270.17% | 129.10% | |
| Net property, plant, and equipment | 657,660 | 642,560 | 924,360 | CL/equity | 55.69% | 56.03% | 52.75% | 50.90% | |
| Other assets | 25,750 | 47,580 | 68,780 | EBIT/interest | 1.93× | 1.02× | 1.70× | 5.76× | |
| Total assets | $1,006,660 | $1,010,320 | $1,523,600 | Profitability | |||||
| Liabilities and stockholders’ equity | Net income/sales | 2.71% | 0.31% | 1.74% | 2.50% | ||||
| Notes payable | $62,200 | $57,630 | $7,330 | Sales/total assets | 1.24× | 1.22× | 1.33× | 1.68× | |
| Accounts payable | 53,000 | 57,970 | 105,250 | Total assets/equity | 3.41× | 3.43× | 3.95× | 3.26× | |
| Income taxes payable | 3,740 | 4,120 | 5,880 | Net income/equity | 11.40% | 1.28% | 9.18% | 13.70% | |
| Other current | 45,440 | 45,410 | 84,950 | Causal | |||||
| Total current | 164,380 | 165,130 | 203,410 | Fixed assets/equity | 222.82% | 218.01% | 239.71% | 110.00% | |
| Long-term debt | 491,330 | 501,250 | 768,490 | Collection period | 36.33 days | 38.00 days | 43.67 days | 38.90 days | |
| Deferred taxes | 55,800 | 49,210 | 69,900 | Sales/inventory | 8.15× | 8.29× | 8.53× | 12.30× | |
| Total long-term debt | 547,130 | 550,460 | 838,390 | Sales/equity | 4.22× | 4.17× | 5.27× | 2.63× | |
| Total liabilities | 711,510 | 715,590 | 1,041,800 | Net income/sales | 2.71% | 0.30% | 1.74% | 5.20% | |
| Common stock | 147,390 | 152,170 | 222,360 | Miscellaneous assets/equity | 8.72% | 16.14% | 17.83% | 7.95% | |
| Retained earnings | 147,760 | 142,560 | 163,250 | ||||||
| Total common equity | 295,150 | 294,730 | 385,610 | ||||||
| Preferred stock | – | – | 96,190 | ||||||
| Total liabilities & equity | $1,006,660 | $1,010,320 | $1,523,600 | ||||||
| Net sales | $1,244,390 | $1,229,150 | $2,032,320 | ||||||
| Other income | 7,110 | 4,600 | 10,850 | ||||||
| Total | 1,251,500 | 1,233,750 | 2,043,170 | ||||||
| Costs and expenses | |||||||||
| Cost of sales | 925,870 | 944,150 | 1,564,610 | ||||||
| Selling and administrative expenses | 147,640 | 156,990 | 241,180 | ||||||
| Depreciation and amortization | 63,380 | 67,810 | 92,310 | ||||||
| Interest expense | 59,280 | 63,310 | 85,340 | ||||||
| Total | 1,196,170 | 1,232,260 | 1,983,440 | ||||||
| Income (loss) before taxes | 55,330 | 1,490 | 59,730 | ||||||
| Provision (credit) for income taxes | 21,670 | -2,290 | 24,320 | ||||||
| Net income | $33,660 | $3,780 | $35,410 |
Collepals.com Plagiarism Free Papers
Are you looking for custom essay writing service or even dissertation writing services? Just request for our write my paper service, and we'll match you with the best essay writer in your subject! With an exceptional team of professional academic experts in a wide range of subjects, we can guarantee you an unrivaled quality of custom-written papers.
Get ZERO PLAGIARISM, HUMAN WRITTEN ESSAYS
Why Hire Collepals.com writers to do your paper?
Quality- We are experienced and have access to ample research materials.
We write plagiarism Free Content
Confidential- We never share or sell your personal information to third parties.
Support-Chat with us today! We are always waiting to answer all your questions.
