MARNI COMPANY
Balance Sheet
As of December 31, 2007
ASSETS
Cash = $50,000
Accounts Receivable = 100,000
Inventory = 200.000
Net Plant and Equipment = 650,000
Total Assets = $1,000,000
LIABILITIES AND STOCKHOLDERS' EQUITY
Accounts Payable = $100.000 Accrued Expenses = 90,000
Long-Term debt = 250,000
Common Stock = 100.000
Paid-In capital = 50.000
Retained earnings = 410.000
Total Liabilities and Stockholders' Equity = $1,000,000
MARNI COMPANY
Income Statement
For the Year Ended December 31, 2007
Sales (all on credit) = $2,000,000
Cost of Goods Sold = 1.750.000
Gross Profit = 250,000
Sales and Administrative Expense = 30,000
Fixed Lease Expenses = 10.000
Depreciation = 60.000
Operating Profit = 150,000
Interest Expense = 25.000
Profit before Taxes = 125,000
Taxes (40%) = 50.000
Net Income = $75,000
a. Refer to the Marni Company data above. Compute Marni's after tax profit margin.
b. Refer to the Marni Company data above. Compute the firm's return on equity.
c. Walk to the Mari Compy data abos Companhe firm poole et
d. Refer to the Mami Cotpurry di ubive, Cognite the firm's average anthemian poriod.
e. Refer to The Mami Company data abisva Com the firm's ventory over ratio
f. Refer to the Mani Company dals above. Compose the firm's fixed annet turnover ratio
g. Refer to the Maral Company data shove Compute Marni's total annet turnover.
h. Refer to the harm Company data above Compute Marni's quick ratin
i. Refer to the Marni Company data above. Compute Mami's current ratio.
j. Refer to the Mami Company data above, Compute the firm's debt to asset ratio.
k. Refer to the Marni Company data above. Compute the times interest cared for Mami Company.
l. Refer to the Marni Company data above, Compute the fixed charge coverage for Marni Company.