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The Vanguard Group Inc has compiled the following financial statements and comparative financial ratios for the year-end review Balance Sheet Venguard Group Inc December 31 2012 Ratio

The Vanguard Group, Inc. has compiled the following financial statements and comparative financial ratios for the year-end review.

Balance Sheet

Venguard Group, Inc.

December 31, 2012

Ratio Analysis

Current Assets

Cash                                                                                            $ 118,750

Accounts receivable                                                                      296,250

Inventory                                                                                      303,750

Total current assets                                                                   $ 718,750

Gross fixed assets                                          $625,000

Less: Accumulated depreciation                      93750

Net fixed assets                                                                                    ____531,250__

Total assets                                                                                         __$1,250,000__

Liabilities and Stockholders Ac€?oEquity

Current Liabilities                                                                              

Accounts payable                                                                        $ 111, 250                                                                                                                                                                                                                                                            Notes payable                                                                                 211,250

            Accruals                                                                                           108, 750

Total current liabilities                                                   $ 431,250

Long-term debt                                                                                          _235,000

                        Total liabilities                                                                 $ 666,250

StockholdersAc€?c equity                                                          

            Common stock                                                                               318,750

            Retained earnings                                                                         265,000

                                    Total stockholders Ac€?oequity                                   $583,750

Total liabilities and stockholdersAc€?c equity                                               $1,250,000

Income Statement

Vanguard Group, Inc.

For the year Ended December 31, 2012

Sales revenue                                                                                        $ 1,680,000

Cost of sales                                                                                              1,362,480

Gross profits                                                                                          $   317,520

Less: Operating expenses

            Selling expense                                                                           $ 125,600

            General and administrative expense                                             82,600

            Depreciation expense                                                                       24,000__

                        Total operating expense                                                                        $ 231,200

Operating profits                                                                                                                86,320

Less: interest expense                                                                                                         15,600

Net profits before taxes                                                                                                    $ 70,720

Historical and Industry Average Ratios

Vanguard Group, Inc.

Ratio                                              2010                     2011              2012                      2012

Current ratio                               1.6                           1.7                _____                      1.6

Quick ratio                                     .9                           1.0                _____                        .9

Inventory turnover                      6.0                           5.0                _____                       8.4

Average collection period            40 days                   50 days        _____                       40 days  

Total asset turnover                      1.5                           1.5               _____                       1.75

Debt ratio                                       60%                          56%          _____                        50%

Times interest earned                    2.5                           3.5               _____                        4.0

Gross profit margin                       20%                         19.7%        _____                        20%

Operating profit margin                  4.7%                       4.8%               ______                     6%

Net profit margin                              2.0%                        2.3%                ______                   3%

Return on investment                       3.0%                        3.5%               _______             5.25%

Return on equity                                7.5%                       7.95%              ______              10.5%

Calculate the firmAc€?cs 2012 financial ratios.

Analyze the firmAc€?cs performance from both time-series and cross-sectional viewpoints

Comment on the firmAc€?cs overall financial condition and performance

Jul 08 2020 View more View Less

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