Acc 291 Week 5 Profitabilty Ratios
ACC/291
March 25,2012 Liquidity Ratios
Current Ratio: Current Assets/Current Liabilities
2005
$14,555,092/ $6,974,752= 2.09:1
2004
$14,643,456/ $6,029,696=2.43:1
Acid Test Ratio: Cash+ Short-Term Investments + Receivables (Net)/ Current Liabilities
2005
$305,563 + $283,583 +$6,133,663/ $6,974,752= .96:1
2004
$357,216 + $133,504 + $5,775,104/ $6,029,696=1.04:1
Receivables Turnover: Net Credit Sales/ Average Net Receivables
2005
$50,823,685/ ($6,133,663 + 5,775,104/2)
$50,823,685/ $5,954,384= 8.54 times
2004
$46,044,288/($5,775,104+6,569,344/2)
$46,044,288/ $6,172,224=7,46 times
Inventory Turnover: Cost of Goods Sold/ Average Inventory
2005
$42,037,624/ ($7,850,970+$7,854,112/2)
$42,037,624/$7,852,541=5.35 times
2004
$37,480,050/ ($7,854,112+8,074,880/2)
$37,480,050/ $7,964,496=4.71 times
Profitability Ratios
Current Assets 2004 2005
Cash $305,563 $357,216
Accounts Receivable $6,062,838 $5,657,216
Current Portion of Notes Receivable $70,825 $117,888
Inventories $7,850,970 $7,854,112
Deferred Income Taxes – net $328,832
Prepaid Expenses and Other Items $264,896 $328,192
Total Current Assets $14,555,092 $14,643,456
Non-Operating Expenses
Interest Expense $143,175 $230,221
Taxes $943,274 $1,025,406
Total Non-Operating Expenses $1,086,449
March 25,2012 Liquidity Ratios
Current Ratio: Current Assets/Current Liabilities
2005
$14,555,092/ $6,974,752= 2.09:1
2004
$14,643,456/ $6,029,696=2.43:1
Acid Test Ratio: Cash+ Short-Term Investments + Receivables (Net)/ Current Liabilities
2005
$305,563 + $283,583 +$6,133,663/ $6,974,752= .96:1
2004
$357,216 + $133,504 + $5,775,104/ $6,029,696=1.04:1
Receivables Turnover: Net Credit Sales/ Average Net Receivables
2005
$50,823,685/ ($6,133,663 + 5,775,104/2)
$50,823,685/ $5,954,384= 8.54 times
2004
$46,044,288/($5,775,104+6,569,344/2)
$46,044,288/ $6,172,224=7,46 times
Inventory Turnover: Cost of Goods Sold/ Average Inventory
2005
$42,037,624/ ($7,850,970+$7,854,112/2)
$42,037,624/$7,852,541=5.35 times
2004
$37,480,050/ ($7,854,112+8,074,880/2)
$37,480,050/ $7,964,496=4.71 times
Profitability Ratios
Current Assets 2004 2005
Cash $305,563 $357,216
Accounts Receivable $6,062,838 $5,657,216
Current Portion of Notes Receivable $70,825 $117,888
Inventories $7,850,970 $7,854,112
Deferred Income Taxes – net $328,832
Prepaid Expenses and Other Items $264,896 $328,192
Total Current Assets $14,555,092 $14,643,456
Non-Operating Expenses
Interest Expense $143,175 $230,221
Taxes $943,274 $1,025,406
Total Non-Operating Expenses $1,086,449