Ratio analysis for johnson inc.

Financial Statement Analysis
The Financial Statements for Johnson Inc. for the year ended December 31, 2009, follow.
Johnson Inc Johnson Inc
Income Statement Balance Sheet
For the year ended December 31, 2009 For year ended December 31, 2009

Don't use plagiarized sources. Get Your Custom Essay on
Ratio analysis for johnson inc.
Just from $13/Page
Order Essay

Sales Revenue $160,000 Assets
Less: Cost of goods sold 106,000 Cash $ 500
Gross profits $ 54,000 Marketable Securities 1,000
Less: Operating Expenses Accounts Receivable 25,000
Selling Expenses $ 16,000 Inventories 45,500
General and Admin 10,000 Total Current Assets $ 72,000
Lease Expense 1,000 Land $ 26,000
Depreciation 10,000 Buildings & Equip 90,000
Total Operating Expense $ 37,000 Less : Accumulated Depreciation 38,000
Operating Profits $ 17,000 Net Fixed Assets $ 78,000
Less: Interest Expense 6,100 Total Assets $ 150,000
Net Profits before Taxes $10,900
Less: Taxes 4,360 Liabilities and Stockholders’ Equity
Net profit after taxes $ 6,540 Accounts Payable $ 22,000
Notes Payable 47,000
Total Current Liabilities $ 69,000
Long Term Debt $ 22,950
Common Stock $ 31,500
Retained Earnings $ 26,550
Total Liabilities and Equity $ 150,000

Use the preceding financial information to complete the following table. Assume the industry averages given in the table are applicable for both 2008 and 2009.
Ratio Industry Avg Actual 2008 Actual 2009
Current Ratio 1.80 1.84
Quick Ratio .70 .78
Inventory turnover 2.50 2.59
Average collection period 37.5 days 36.5 days
Debt Ratio 65% 67%
Gross Profit margin 38% 40%
Net profit margin 3.5% 3.6%
Return on total assets 4.0% 4.0%

A. Calculate the above ratios for 2009 and comment on how they relate to the actual ratios for 2008 and the industry average.

Order a unique copy of this paper
(550 words)

Approximate price: $22

Basic features
  • Free title page and bibliography
  • Unlimited revisions
  • Plagiarism-free guarantee
  • Money-back guarantee
  • 24/7 support
On-demand options
  • Writer’s samples
  • Part-by-part delivery
  • Overnight delivery
  • Copies of used sources
  • Expert Proofreading
Paper format
  • 275 words per page
  • 12 pt Arial/Times New Roman
  • Double line spacing
  • Any citation style (APA, MLA, Chicago/Turabian, Harvard)

Our Guarantees

At 111papers.com, we value all our customers, and for that, always strive to ensure that we deliver the best top-quality content that we can. All the processes, from writing, formatting, editing, and submission is 100% original and detail-oriented. With us, you are, therefore, always guaranteed quality work by certified and experienced writing professionals. We take pride in the university homework help services that we provide our customers.

Money-Back Guarantee

As the best homework help service in the world, 111 Papers ensures that all customers are completely satisfied with the finished product before disbursing payment. You are not obligated to pay for the final product if you aren’t 100% satisfied with the paper. We also provide a money-back guarantee if you don’t feel that your paper was written to your satisfaction. This guarantee is totally transparent and follows all the terms and conditions set by the company.

Read more

Zero-Plagiarism Guarantee

All products that we deliver are guaranteed to be 100% original. We check for unoriginality on all orders delivered by our writers using the most advanced anti-plagiarism programs in the market. We, therefore, guarantee that all products that we submit to you are 100% original. We have a zero-tolerance policy for copied content. Thanks to our strict no plagiarized work rule, you can submit your homework to your professor without worrying.

Read more

Free-Revision Policy

TThis is one of the most cherished courtesy services that we provide to help ensure that our customers are completely satisfied with our finished products. Delivering the best final product to our customers takes multiple inputs. 111papers.com prides itself on delivering the best university homework help services in the writing industry. And, in part, our free revision policy is how we do it. What’s more, all our revisions are 100% free without any strings attached.

Read more

Privacy Policy

Client privacy is important to use. We know and understand just how important customers value their privacy and always want to safeguard their personal information. Thus, all the information that you share with us will always remain in safe custody. We will never disclose your personal information to any third party or sell your details to anyone. 111 Papers uses the most sophisticated, top-of-the-line security programs to ensure that our customers’ information is safe and secured.

Read more

Fair-Cooperation Guarantee

Placing your order with us means that you agree with the homework help service we provide. We, in turn, will endear to ensure that we do everything we can to deliver the most comprehensive finished product as per your requirements. We will also count on your cooperation to help us deliver on this mandate. Yes, we also need you to ensure that you have the highest-quality paper.

Read more

Calculate the price of your order

550 words
We'll send you the first draft for approval by September 11, 2018 at 10:52 AM
Total price:
The price is based on these factors:
Academic level
Number of pages