You are evaluating the performance of a struggling competitorYou have obtained its income statement:
able[[Income Statement,2023,2022],[Sales,134,140],[Cost of Goods Sold,13,42],[Gross Profit,121,98],[Selling and Admin Expenses (SG&A),17,12],[Research and Development (R&D),12,18],[Depreciation & Amortization,11,13],[Operating Income,81,55],[Other Income (Loss),0,-5],[Earnings Before Interest and Taxes (EBIT),81,50],[Interest Expense,9,16],[Pre-Tax Income,72,34],[Taxes,29,14],[Net Income,43,20],[Earnings Per Share (2.2 million shares),$19.55,$9.09
You are evaluating the performance of a struggling competitor. You have obtained its income statement:
Income Statement Sales Cost of Goods Sold Gross Profit Selling and Admin Expenses (SG&A) Research and Development (R&D) Depreciation & Amortization Operating Income Other Income (Loss) Earnings Before Interest and Taxes (EBIT) Interest Expense Pre-Tax Income Taxes Net Income Earnings Per Share (2.2 million shares) and its balance sheet:
2023 134 13 121 17 12 11 81 0 81 9 72 29 43 $19.55
2022 140 42 86 12 18 13 55 5 50 16 34 14 20 606$
Assets Current Assets Cash Marketable Securities Accounts Receivable Inventory Total Current Assets
2023
2022Liabilities & Shareholder Equity Current Liabilities 12 Accounts Payable 34 Notes Payable 41 Total Current Liabilities 37| 124 Long-Term Liabilities Long-Term Debt Total Long-Term Liabilities 276[ 276 Total Liabilities
2023
2022|
20 48 49 52 169
40
96 105 201
107
208 208
66 66
Long-Term Assets Net Plant, Property, & Equipment Total Long-Term Assets
301 301
315
300
Shareholder Equity
155
100
Total Assets 470 400Total Liabilities & Shareholder Equity Assume all balance sheet and income statement entries are in millions, except shares and earnings per share which are given as actual values.
470|
400
. Current ratio Quick ratio Cash ratio
