Lisa Alviani

20/454793/EK/22757
Prodi Akuntansi
Tugas Manajemen Keuangan (TKM CH 4)
1. SP 4-1
(Preparing common-size financial statements) As the newest hire to the financial
analysis group at Patterson Printing Company, you have been asked to perform a basis
financial analysis of the company’s most recent financial statements. The 2016 balance
sheet and income statement for the Patterson are as follows :

a. A common-size balance sheet for Patterson Printing Company :

Patterson Printing Company

A common-size balance sheet
2016
Amount Percent
Cash and marketable securities $500 1.50%
Accounts Receivable 6,000 18.20%
Inventories 9,500 28.80%
Current assets $16,000 48.50%
Net property plant and equipment 17,000 51.50%
Total assets 33,000 100%
Accounts Payable $7,200 21.80%
Short-term debt 6,800 20.60%
Current liabilities 14,000 42.40%
Long-term liabilities 7,000 21.20%
Total liabilities $21,000 63.60%
Total owners'equity 12,000 36.40%
Total liabilities and owner's equity $33,000 100%
 b. A common size income statement for Patterson Printing Company :

Patterson Printing Company

A common size income statement
2016
Amount Percent
Revenues $30,000 100%
Cost of goods sold -20,000 66.70%
Gross profit $10,000 33.30%
Operating expenses -8,000 26.70%
Net operating income 2,000 6.70%
Interest expense -900 3.00%
Earnings before taxes 1,100 3.70%
Taxes -400 1.30%
Net income $700 2.30%

2. SP 4-26
(Analyzing financial statements) Carson Electronics’ management has long viewed
BGT Electronics as an industry leader and uses this firm as a model firm for analyzing
its own performance. The balance sheets and income statements for the two firms are
as follows:
A. Calculate the following ratios for both Carson and BGT :
𝐶𝑢𝑟𝑟𝑒𝑛𝑡 𝐴𝑠𝑠𝑒𝑡𝑠
1) Current Ratio = 𝐶𝑢𝑟𝑟𝑒𝑛𝑡 𝐿𝑖𝑎𝑏𝑖𝑙𝑖𝑡𝑖𝑒𝑠

$8,000
Carson’s Current Ratio = $7,000
= 1.14

$10,000
BGT’s Current Ratio = $8,000
= 1.25

𝑁𝑒𝑡 𝑂𝑝𝑒𝑟𝑎𝑡𝑖𝑛𝑔 𝐼𝑛𝑐𝑜𝑚𝑒 𝑜𝑟 𝐸𝐵𝐼𝑇

2) Times Interest Earned = 𝐼𝑛𝑡𝑒𝑟𝑒𝑠𝑡 𝐸𝑥𝑝𝑒𝑛𝑠𝑒

$4,000
Carson’s times interest earned = $1,150
= 3.48 times

$16,000
BGT’s times interest earned = $550
= 29.09 times
 𝐶𝑜𝑠𝑡 𝑜𝑓 𝐺𝑜𝑜𝑑𝑠 𝑆𝑜𝑙𝑑
3) Inventory Turnover = 𝐼𝑛𝑣𝑒𝑛𝑡𝑜𝑟𝑖𝑒𝑠

$36,000
Carson’s inventory turnover = $1,500
= 24 times

$42,000
BGT’s inventory turnover = $2,500
= 16.8 times

𝑆𝑎𝑙𝑒𝑠
4) Total asset turnover = 𝑇𝑜𝑡𝑎𝑙 𝐴𝑠𝑠𝑒𝑡𝑠

$48,000
Carson’s total asset turnover = $24,000
=2
$70,000
BGT’s total asset turnover = $35,000
=2

𝑁𝑒𝑡 𝑜𝑝𝑒𝑟𝑎𝑡𝑖𝑛𝑔 𝐼𝑛𝑐𝑜𝑚𝑒 𝑜𝑟 𝐸𝐵𝐼𝑇

5) Operating profit margin = 𝑆𝑎𝑙𝑒𝑠

$4,000
Carson’s the operating profit margin = $48,000
= 0.083
= 8.3%

$16,000
BGT’s the operating profit margin = $70,000
= 0.229
= 22.9%
𝑁𝑒𝑡 𝑜𝑝𝑒𝑟𝑎𝑡𝑖𝑛𝑔 𝐼𝑛𝑐𝑜𝑚𝑒 𝑜𝑟 𝐸𝐵𝐼𝑇
6) Operating return on assets (OROA) = 𝑇𝑜𝑡𝑎𝑙 𝐴𝑠𝑠𝑒𝑡𝑠

$4,000
Carson’s operating return on assets = $24,000
= 0.167
= 16.7%

$16,000
BGT’s operating return on assets = $35,000
= 0.457
= 45.7%
𝑇𝑜𝑡𝑎𝑙 𝐷𝑒𝑏𝑡
7) Debt Ration = 𝑇𝑜𝑡𝑎𝑙 𝐴𝑠𝑠𝑒𝑡𝑠

$15,000
Carson’s debt ratio = $24,000
= 0.625
= 62.5%
 $12,000
BGT’s debt ratio = $35,000
= 0.343
= 34.3%
𝐴𝑐𝑐𝑜𝑢𝑛𝑡𝑠 𝑅𝑒𝑐𝑒𝑖𝑣𝑎𝑏𝑙𝑒
8) Average Collection Period = 𝑆𝑎𝑙𝑒𝑠
𝐴𝑛𝑛𝑢𝑎𝑙 𝐶𝑟𝑒𝑑𝑖𝑡 𝑑𝑎𝑦𝑠
365

$4,500
Carson’s average collection period = $48,000
𝑑𝑎𝑦𝑠
365
= 34.2 days

$6,000
BGT’s average collection period = $70,000
𝑑𝑎𝑦𝑠
365
= 31.3 days

𝑆𝑎𝑙𝑒𝑠
9) Fixed asset turnover = 𝑀𝑒𝑡 𝑃𝑙𝑎𝑛𝑡 𝑎𝑛𝑑 𝐸𝑞𝑢𝑖𝑝𝑚𝑒𝑛𝑡

$48,000
Carson’s fixed asset turnover = $16,000
=3
$70,000
BGT’s fixed asset turnover = $25,000
= 2.8
𝑁𝑒𝑡 𝐼𝑛𝑐𝑜𝑚𝑒
10) Return on Equity =
𝐶𝑜𝑚𝑚𝑜𝑛 𝐸𝑞𝑢𝑖𝑡𝑦

$1,710
Carson’s return on equity = 9,000
= 0.190
= 19%

$9,270
BGT’s return on equity = 23,000
= 0.403
= 40.3%

B. Analyze the differences between Carson and BGT

No. Category of Financial Ratios Performance
1. Liquidity Ratios
Current Ratio BGT’s performance is better than Carson’s
performance
Average Collection Period BGT’s performance is better than Carson’s
performance
Inventory Turnover Carson’s performance is better than BGT’s
performance
2. Capital Structure Ratios
Debt Ratio BGT’s performance is better than Carson’s
performance
 Times Interest Earned BGT’s performance is better than Carson’s
performance
3. Asset Management
Efficiency Ratios
Total Assets Turnover Same
Fixed Assets Turnover Carson’s performance is better than BGT’s
performance
4. Profitability Ratios
Operating Profit Margin BGT’s performance is better than Carson’s
performance
Operating Return on Assets BGT’s performance is better than Carson’s
performance
Return on Equity BGT’s performance is better than Carson’s
performance

Kesimpulan :
BGT memiliki liquidity ratios, capital structure ratios, dan profitability ratios lebih
baik daripada Caron. Namun, Caron dan BGT memiliki profitability ratio yang
sama.