HH Company Financial?.
HH Company
Using the financial statements for HH Company below:
Sales
1,067,500
Cost of goods sold
1,392,500
Selling, general and administrative
145,000
Earnings before interest and taxes (EBIT)
70,000
Federal and state income taxes (40%)
18,200
Net income
27,300
HH Company Balance Sheet as of December 31, 20XX
Assets
80,500
Accounts Payable
132,000
Accounts Receivable
334,500
Current portion of debt
84,000
Inventories
240,000
Other current liabilities
114,000
Total current assets
655,000
Total current liabilities
330,000
Net fixed assets
292,500
Long-term debt
256,500
Total assets
947,500
Total liabilities
586,500
Common equity
361,000
Total Liabilities & Equity
947,500
1. Calculate the indicated ratios for HH.
Company Averages
Industry Averages
Current Ratio
2.2
Days sales outstanding (based on 365-day year)
36 days
Inventory turnover
6.7
Fixed asset turnover
12.1
Total assets turnover
3.00
Return on sales
1.20%
Return on assets
3.60%
Return on equity
9.00%
Debt ratio
55%
2. Discuss HH s strengths and weaknesses as revealed by your analysis.
3. Suppose HH doubles its sales as well as its inventories, accounts receivable, and common equity during the year. How would that information affect the validity of your ratio analysis?
Your paper should be three pages in length (excluding cover page and references) and formatted according to the CSU-Global Guide to Writing and APA Requirements. Be sure to discuss and reference concepts taken from the assigned textbook reading and relevant research. Review the grading rubric to see how you will be graded for this assignment
HH Company Financial?
LDR 3302-21.01.01-1A24-S1, Organizational Theory and Behavior Unit III Essay Top of Form Bottom of Form…
Chapter 9 What are teratogens? Give 5 examples. Define each of these stages: Germinal, embryonic,…
You are a Financial Analyst that has been appointed to lead a team in the…
You are familiar with the ANA Code of Ethics and have a growing understanding of…
This week’s discussion will focus on management decision-making and control in two companies, American corporation…
Mary Rowlandson felt that the man who eventually came to own her, Quinnapin, was “the…