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  • Great Eastern Toys

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    Suraj Das
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    Great Eastern Toys had $244 in sales revenue in the period. Their cost of sales was $187.225 and selling and administrative expenses were $36.765, leaving earnings before interest and taxes of $15.210. After accounting for interest and tax expenses, their net earnings were $7.631. Their current assets included $33.325 in accounts receivable and $42.550 in inventories. Their current ratio was 1.7 and their short term debt to total debt ratio was 60%.

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    Great Eastern Toys had $244 in sales revenue in the period. Their cost of sales was $187.225 and selling and administrative expenses were $36.765, leaving earnings before interest and taxes of $15.210. After accounting for interest and tax expenses, their net earnings were $7.631. Their current assets included $33.325 in accounts receivable and $42.550 in inventories. Their current ratio was 1.7 and their short term debt to total debt ratio was 60%.

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    © All Rights Reserved
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    4 views2 pages

    Great Eastern Toys

    Uploaded by

    Suraj Das
    Great Eastern Toys had $244 in sales revenue in the period. Their cost of sales was $187.225 and selling and administrative expenses were $36.765, leaving earnings before interest and taxes of $15.210. After accounting for interest and tax expenses, their net earnings were $7.631. Their current assets included $33.325 in accounts receivable and $42.550 in inventories. Their current ratio was 1.7 and their short term debt to total debt ratio was 60%.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
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    of 2

    Great Eastern Toys -

    Sales revenue: 244

    Cost of sales[COS]:187.225

    Selling and administrative expenses[S&A]:36.765

    Depreciation expense:5.7

    Earnings before interest and taxes [EBIT]:15.210

    Interest Expense:6.125

    Earnings before taxes [EBIT]:9.085

    Taxes:1.454

    Earning after taxes [EAT]: 7.631

    Dividends paid:4.81

    Retained earnings: 1.55

    Cash & marketable securities :2.4

    Accounts receivable:33.325

    Inventories:42.550

    Prepaid expenses :1.163

    Net fixed assets :18.6

    Total Assets :98.038

    Short-term debt :27.774

    Accounts payable :19.85

    Accrued expenses(operations):5.1

    Long term debt :3.32

    Owner’s equity :41.986

    Total liabilities & net worth :98.038

    A B C
    Current ratio 1.7 2 1.6
    Short term/total debt 60% 75% 65%
    Avg collection period 32 days 29 days 30 days
    Avg payment period 30 days 32 days 37 days
    Inventory turnover 8 times 10 times 9 times
    Pre-tax operating 6% 6.8% 6.5%
    margin
    Return on invested 20.5% 28.1% 24.2%
    capital
    Pre-tax return 18.4% 24.6% 21.9%
    on equity
    Effective tax 15% 16% 16%
    rate

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