Fortune Stationers is open 250 days each year and last year achieved sales of $9

Fortune Stationers is open 250 days each year and last year achieved sales of $9

Fortune Stationers is open 250 days each year and last year achieved sales of $9

(Calculation of Ratios) Fortune Stationers is open 250 days each year and last year achieved sales of $9 million with a gross profit of 60% of sales. At the end of the year, Fortune”s statement of financial position showedAccounts receivable$1,200,000Inventory450,000Accounts payable1,400,000Calculate (a) the days” sales outstanding, (b) inventory turnover, (c) days” inventory held, and (d) days” purchases outstanding.Rockford Inc.Statement of Comprehensive Income (in $millions)20122011Turnover$1,021.5$847.4Cost of sales-855.3-710.4Gross profit166.2137.0Administrative expenses-47.9-29.1Operating profit118.3107.9Net interest payable-0.9-0.3Profit on ordinary activities before taxes117.4107.6Taxes-30.7-33.5Profit on ordinary activities after taxes86.774.1Dividends-33.3-29.3Profit retained for the period$53.4$44.8Earnings per share21.3418.44440 million shares were issued at 104 each:Market value of shares$1.50$1.40Rockford Inc.Statement of Financial Position (in $millions)20122011Non-current assetsGoodwill$37.3$32.3Property, plant, & equipment167.6132.3Investments22.525.7227.4190.3Current assetsInventory135.0105.3Accounts receivable22.520.8Cash at bank16.217.8173.7143.9Total assets401.1334.2Non-current liabilitiesLong-term loans14.813.4Provision for deferred taxes9.57.624.321.0Current liabilitiesAccounts payable159.8149.6Total liabilities184.1170.6Net assets$217.0$163.6EquityShare capital44.044.0Retained earnings173.0119.6Shareholders” equity$217.0$163.6Calculate sufficient ratios for both 2012 and 2011 to demonstrate the changes in profitability, liquidity, efficiency, leveraging, and shareholder return of Rockford, and comment on the most important changes between 2012 and 2011.

 

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