1. The Financial statement of Junko Corporation for the year ended Desember 31, 2014,
follow.
Junko Corporation Income Statement
for the Year Ended December 31, 2014
Amount in $
Sales revenue
180.000
Less: Cost of goods sold
106.000
Gross profits
74.000
Less: Operating expenses
Selling expense
16.000
General and administrative expenses
20.000
Lease expense
2.000
Depreciation expense
10.000
Total operating expense
48.000
Operating profits
26.000
Less: Interest expense
5.000
Net profits before taxes
21.000
Less: Taxes
8.400
Net profits after taxes
12.600
Assets
Cash
Marketable securities
Accounts receivable
Inventories
Total current assets
Land
Buildings and equipment
Less: Accumulated depreciation
Net fixed assets
Total assets
1.000
2.000
25.000
45.000
73.000
30.000
1 00.000
38.000
92.000
165.000
Liabilities and Stockholders’ Equity
Accounts payable
20.000
Notes payable
43.000
Total current liabilities
63.000
Long-term debt
27.000
Common stock
50.000
Retained earnings
25.000
Total liabilities and stockholders’ equity
165.000
The firm’s 5,000 outstanding shares of common stock at a price of $25 per share.
Instructions
a) Analyze Junko Corporation financial condition as it is related to liquidity, activity, debt,
profitability and market compare to the industry average and summary the company overall
financial condition.
Description
Current Ratio
Quick Ratio
Inventory Turnover
Average Collection Period
Debt Ratio
Times interest earned ration
Gross Profit Margin
Return on total assets
Return on common equity
Market/Book Ratio
Industry Average
1,68
0,77
2,55
37,59
63,0%
3,84
40,0%
4,0%
8,0%
1,10