Description
Assignment 08
BU330 Accounting for Managers
Directions:Be sure to make an electronic copy of your answer before submitting it to Ashworth College for grading.
Financial Statement Analysis
The following information relates to Harris Corporation.
| Account | Current year | Prior year |
| Net sales (all credit) | $520,125 | $499,500 |
| Cost of goods sold | $375,960 | $353,600 |
| Gross profit | $144,165 | $145,900 |
| Income from operations | $ 95,500 | $ 79,900 |
| Interest expense | $ 23,500 | $ 19,500 |
| Net income | $ 57,600 | $ 51,600 |
| Cash | $ 30,600 | $ 15,900 |
| Accounts receivable, net | $ 33,800 | $ 23,200 |
| Inventory | $ 42,000 | $ 30,300 |
| Prepaid expenses | $ 2,000 | $ 1,500 |
| Total current assets | $ 108,400 | $ 70,900 |
| Total long-term assets | $ 62,000 | $ 38,000 |
| Total current liabilities | $ 46,000 | $ 41,600 |
| Total long-term liabilities | $ 20,000 | $ 22,700 |
| Common stock, no par, 3,000 shares, value $50/share | $ 30,000 | $ 30,000 |
Required:
- What is the acid-test ratio for the current year?
- What is the inventory turnover for the current year?
- What is days' sales in receivables for the current year?
- What is the book value per share of common stock for the current year?
- What is the price-earnings ratio for the current year?
- What is the rate of return on total assets for the current year?
- What is the times-interest-earned ratio for the current year?
- What is the current ratio for the current year?
This is the end of Assignment 08.
Explanation & Answer
Hey buddy, have a look at the work and in case you need any clarification, please kindly get back in touch. Will be looking forward to working with you for the rest of the course. All the best
Harris Corporation.
Student’s Name
Institution of Affiliation
Date
1
HARRIS CORPORATION
1. The acid-test ratio fo...
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