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FS Analysis

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Alyson Bernardino
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30 views

FS Analysis

Uploaded by

Alyson Bernardino
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
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1.

Given the following balance sheet, income statement, historical ratios and industry
averages, calculate the Pulp, Paper, and Paperboard, Inc. financial ratios for the most
recent year. Analyze its overall financial situation for the most recent year. Analyze its
overall financial situation from both a cross-sectional and time-series viewpoint. Break
your analysis into an evaluation of the firm's liquidity, activity, debt, and profitability.

Income Statement
Pulp, Paper and Paperboard, Inc.
For the Year Ended December 31, 2022
__________________________________________________________
Sales Revenue $2,080,976
Less: Cost of Goods Sold 1,701,000
-----------
Gross Profits $ 379,976
Less: Operating Expenses 273,846
-----------
Operating Profits $ 106,130
Less: Interest Expense 19,296
-----------
Net Profits Before Taxes $ 86,834
Less: Taxes (40%) 34,810
-----------
Net Profits After Taxes $ 52,024

Balance Sheet
Pulp, Paper and Paperboard, Inc.
December 31, 2022
Assets
___________________________________________________________
Cash $ 95,000
Accounts receivable 237,000
Inventories 243,000
-----------
Total current assets $ 575,000
Gross fixed assets 500,000
Less: Accumulated depreciation 75,000
-----------
Net fixed assets $ 425,000
Total assets $1,000,000
Liabilities and stockholders' equity
__________________________________________________________
Current liabilities
Accounts payable $ 89,000
Notes payable 169,000
Accruals 87,000
----------
Total current liabilities $ 345,000
Long-term debts 188,000
----------
Total liabilities $ 533,000
Stockholders' equity
Common stock 255,000
Retained earnings 212,000
----------
Total stockholders' equity $ 467,000
-------------
Total liabilities and stockholders' equity $1,000,000

Historical and Industry Average Ratios


Pulp, Paper and Paperboard, Inc.
__________________________________________________________________
Industry
Ratio 2020 2021 2022 2022
__________________________________________________________________
Current Ratio 1.6 1.7 ----- 1.6
Quick Ratio 0.9 1.0 ----- 0.9
Inventory Turnover 8.1 9.3 ----- 8.4
Average Collection Period 33 days 37 days ----- 39 days
Total Asset Turnover 2.3 2.2 ----- 2.2
Debt Ratio 60% 56% ----- 58%
Times Interest Earned 2.5 3.5 ----- 2.3
Gross Profit Margin 21% 19.7% ----- 20.4%
Operating Profit Margin 4.7% 4.8% ----- 4.7%
Net Profit Margin 1.8% 1.6% ----- 1.4%
Return on total assets 4.1% 3.5% ----- 3.08%
Return on Equity 10.3% 7.9% ----- 7.3%
Accounts Receivable turnover
Average age of inventory
Fixed Asset Turnover
Equity Ratio
Debt-Equity Ratio
Book value per share (P100 par)
Earnings per share
Dividend per share (Dividends of P18,000)
Dividend payout ratio
Dividend yield ratio (P150 market value)
Price/Earning ratio

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