Managerial Accounting Sabin Electronics

SABIN ELECTRONICS

THIS YEAR
LAST YEAR

1. A.)
Current Assets
$ 1,520,000
$ 1,090,000

Current Liabilities
$ 800,000
$ 430,000

Working Capital
$ 720,000
$ 660,000

B.)
Current Assets
$ 1,520,000
$ 1,090,000

Current Liabilities
$ 800,000
$ 430,000

Current Ratio
1.90 to 1
2.53 to 1

(c.assets / c.liabilities)

C.)
Quick Assets

* Cash + Marketable Securities + Accts. Recievable
$ 550,000
$ 468,000

Current Liabilities
$ 800,000
$ 430,000

Acid-test Ratio
0.69 to 1
1.09 to 1

(quick assets / c.liabilities)

D.)
Sales on Account
$ 5,000,000
$ 4,350,00

Average Recievable
$ 390,000
$ 275,000

Turnover of Recievables
12.8 times
15.8 times

* sales on account / ave.receivables

Ave. age of Receivables:
28.5 days
23.1 days

365 days / turnover

E.)
Cost of Goods Sold
$ 3,875,000
$ 3,450,000

Average Inventory
$ 775,000
$ 550,000

Inventory Turnover
5.0 times
6.3 times

* cost of goods sold / ave.turnover

Turnover in Days:
73 days
58 days

365 / turnover

F.)
Total Liabilities
$ 1,400,000
$ 1,030,000

Stockholders' Equity
$ 1,600,000
$ 1,430,000

Dept-to-equity ratio
0,875 to 1
0.72 to 1

* total liabilities / stockholders' equity

G.)
Net Income before interest and taxes
$ 472,000
$ 352,000

Interest Expense
$ 72,000
$ 72,000

Times interest earned
6.6 times
4.9 times

* net income before interest and taxes / interest earned

BALANCE SHEET COMMON-SIZE FORMAT

THIS YEAR
LAST YEAR

2. A.)
Current Assets:

Cash
2.30%
6.10%

Marketable Securities
-
0.7

Accounts Receivable, net
16.0
12.2

Inventory
31.7
24.4

Prepaid Expenses
0.7
0.9

Total