119) Flynn's Corners Company (Flynn's) operates a large quarry in Central Ontario. Selected data from Flynn's for the year ended December 31, 2010 are presented below:
Total assets$1,600,000
Average total assets1,500,000
Net earnings123,200
Net sales1,200,000
Average common shareholders' equity1,000,000
Net cash provided by operating activities280,000
Required:
1. Calculate the profit margin and return on assets for Flynn's for the year ended December 31, 2010.
2. Comment on the ratios you prepared in part 1 assuming the following averages for the quarry industry:
Profit margin ? 8%
Return on Assets ? 14%
120) The following table shows selected data for Buckhorn Corporation for the past four years:
|
2011
|
2010
|
2009
|
2008
|
Net credit sales
|
$19,900
|
$17,600
|
$18,000
|
$16,300
|
Cost of goods sold
|
10,000
|
9,300
|
9,800
|
7,900
|
Inventory
|
12,000
|
11,000
|
9,500
|
9,900
|
Net accounts receivable
|
7,600
|
6,700
|
7,000
|
7,100
|
Required:
a.Prepare an analysis showing the trend percentages for the four years 2008 through 2011, using 2008 as the base year.
b.What was the inventory turnover for 2010?
c.What was the accounts receivable turnover for 2011
121) Based upon recent accounting scandals, identify potential red flags that may be discovered in financial analysis.