Welcome

Anti Essays offers essay examples to help students with their essay writing.

Sign Up

Central Bank Essay

Open Document

Below is an essay on "Central Bank" from Anti Essays, your source for research papers, essays, and term paper examples.

Data for Company UT’ 2009 financial statements follow.
Company UT
Income Statement
For Years Ending December 31
Net sales
Cost of goods sold
Gross profit
Fixed operating expenses except depreciation
Depreciation
Earnings before interest and taxes (EBIT)
Interest
Earnings before taxes (EBT)
Taxes (40%)
Net income

(in millions)

2009
$ 1,500.0
(1,230.0)
$ 270.0
( 90.0)
( 50.0)
$ 130.0
( 40.0)
90.0
( 36.0)
$
54.0

Company UT
Balance Sheet
December 31

$
$

$
$
$

2008
1435.0
(1,176.7)
258.3
( 85.0)
( 40.0)
133.3
( 35.0)
98.3
( 39.3)
59.0

(in millions)

2009
Assets
Cash and marketable securities
Accounts receivable
Inventory
Total current assets
Net plant and equipment
Total assets
Liabilities and Equity
Accounts payable
Accruals
Notes payable
Total current liabilities
Long-term bonds
Total liabilities
Common stock
Retained earnings
Owners’ equity
Total liabilities and equity

2008

$ 15.0
180.0
270.0
465.0
380.0
$845.0

$ 40.0
160.0
200.0
400.0
350.0
$750.0

$ 30.0
60.0
40.0
$130.0
300.0
$430.0
130.0
285.0
$415.0
$845.0

$ 15.0
55.0
35.0
$105.0
255.0
$360.0
130.0
260.0
$390.0
$750.0

Required:
a. Compute the 2009 values of the ratios indicated in the following table:

Ratio

Company UT

Industry

Current ratio

3.9 times

Days sales outstanding

33.5 days

Inventory turnover

7.2 times

Fixed asset turnover

4.1 times

Debt ratio

45.0%

Net profit margin

4.6%

Return on assets

11.8%

Return on equity

21.5%

b. Briefly comment on Company UT’s 2009 financial position. Can you see any obvious strengths
or weaknesses?
c. Compare Company UT’s 2009 ratios with its 2008 ratios. Comment on whether you believe
Company UT’s financial position improved or deteriorated during 2009.
d. Construct a DuPont equation for Company UT, and compare the Company UT’s ratios with the
industry average ratios, and comment briefly...

Show More


Citations

MLA Citation

"Central Bank". Anti Essays. 15 Dec. 2018

<http://snehaedu.com/free-essays/Central-Bank-357440.html>

APA Citation

Central Bank. Anti Essays. Retrieved December 15, 2018, from the World Wide Web: http://snehaedu.com/free-essays/Central-Bank-357440.html