Acme Corporation Acme Corportation

Balance Sheet Income Statement Financial Ratios

December 31, 2019 For the Year Ended December 31, 2109 (1-1) (1-1) (1-2) (1-3)
Industry Ratios Acme Corp's Ratios Calculation Compare Explain
Assets Liabilities Sales $4,290,000 Quick ratio 1
Current Assets Current Liabilities COGS 3,580,000 Current ratio 2.7
Cash $72,000 Accts & Notes Pay. $432,000 Gross Profit 710,000 Inventory turnover 5.8
A/R 439,000 Accruals 170,000 Days sales outstanding 32 days
Inventory 894,000 Total Current Liabilities 602,000 Operating Expenses Fixed assets turnover 13
Total current assets 1,405,000 Long-term debt 404,290 Selling Expenses 121,320 Total assets turnover 2.6
Total Liabilities 1,006,290 Administrative Expenses 115,000 Return on assets 9.10%
Long-term Assets Depreciation 159,000 Return on equity 18.20%
Land and bldg 238,000 Owner's Equity Misc. Expenses 134,000 Debt ratio 50%
Machinery 132,000 Retained earnings 254,710 Operating Profit (EBIT) 180,680 Profit margin on sales 3.50%
Other Fixed Assets 61,000 Common stock 575,000
Total Long-term Assets 431,000 Total Owner's Equity 829,710 Taxes 72,272 *Industry average ratios have been constant for the past four years. (1-4) How is Acme doing compared to the rest of the industry? What are their strengths/what can they do to improve?
*Based on year-end balance sheet figures.

Total Liabilities &

Total Assets $1,836,000 $1,836,000 Net income $108,408
Owner's Equity