Dummy

Solution to Problem 1:
    Sl. No.
    Required Ratios
    Formula Applied
    Calculation
    Ratio
    1.
    Current Ratio
    Current Assets /
Current Liabilities
    131,585,000 /
40,393,000
    3.26 Times
    2.
    Days Sales Outstanding
    Net Receivables /
Total Revenue x 360
    98,359,000 /
148,239,000 x 360
    238.87
i.e. 239 Days
    3.
    Total Assets Turnover Ratio
    Total Revenue /
Total Assets
    148,239,000 / 202,026,000
    0.73
    4.
    Inventory Turnover Ratio
    Cost of Goods Sold / Average Inventory
    118,094,000 / 18,758,000
    6.30
    5.
    Times Interest Earned (TIE) Ratio
    Earnings before Interest & Taxes / Interest Expense
    16,689,000 / 829,000
    20.13
    6.
    Return on Assets (ROA) Ratio
    Net Income /
Total Assets
    9,516,000 / 202,026,000
    0.05
    7.
    Basic Earning Power Ratio
    Earnings before Interest & Taxes / Total Assets
    16,689,000 / 202,026,000
    0.08
    8.
    Return on Equity (ROE) Ratio
    Net Income / Shareholder’s Equity
    9,516,000 / 26,714,000
    0.36
    9.
    Price to Earnings (P/E) Ratio
    Share Price / Earnings per Share
    17.00 / 2.50
    6.8 Times
    
    Share Price
    Given in question
    $17.00
    
    
    Earnings per Share
    Net Income...