Learning Activities: Analysis of Financial Statement

1. Below gives abbreviated balance sheets and income statements for Georgia-Pacific
Corporation. Calculate the following financial ratios:
a) Debt ratio
b) Times interest earned
c) Current ratio
d) Quick ratio
e) Net profit margin
f) Inventory turnover
g) Return on equity
h) Payout ratio

Income statement and balance sheet for Georgia-Pacific Corporation, 1994 (figures in millions)

Net sales $12,738

Cost of goods sold 9,881
Other expenses 1,086
Depreciation 746
Earnings before interest and tax (EBIT) 1,025
Net interest 453
Tax 246
Earnings $326
Dividends 145