FIN 500 Saudi Electronic University Ratio Analysis Accounting Worksheet

Complete the following problems:

Problem 4-1: Ratio analysis
Problem 4-2: Market value ratios
Problem 4-3: Future value calculations
Problem 4-4: Present value calculations
Problem 4-5: Compound annuity calculations
Problem 4-6: Present value of annuity calculations
Problem 4-7: Compound interest at non-annual rates
Balance Sheet:
Cash
Acct/Rec
Inventories
Current assets
Net fixed assets
Total assets
Column1
400,000
725,000
650,000
1,775,000
690,000
2,465,000
Accts/Pay
265,000
Accrued expenses
310,000
Short-term N/P
80,000
Current liabilities
655,000
Long-term debt
950,000
Owner’s equity
860,000
Total liabilities and owners
equity
2,465,000
Income Statement:
Net sales
9,550,000
COGS
4,866,000
Gross profit
4,684,000
Operating expenses 2,984,000
Net operating income1,700,000
Interest expense
45,000
EBT
1,655,000
Income taxes
662,000
Net income
993,000
Formula
CA/CL
(CA-INV)/CL
Total Liabilities/Total Assets
net Operating Profit/Net Sales
Current ratio =
Acid test ratio =
Debt ratio =
Operating profit margin =
Operating return on assets =Operating income/Assets
Net Income/Equity
Return on equity =
Times interest earned =
EBIT/interest Expense
Average collection period =Acc/Rec / (Net Sales/365)
Inventory turnover =
COGS/Inventories
Sales/Fixed Assets
Fixed asset turnover =
Total asset turnover =
Sales/Total Assets
Value
2.709924
1.717557
0.651116
0.17801
0.689655
1.154651
37.77778
27.70942
7.486154
13.84058
3.874239
Column1
a)
b)
Column2
Earnings per Share
Equity Book Value
Price Earning Ratio
Price per share
Price per book value
Column3
SAR
SAR
x
Column4
Column5
42
17.4
11
Earnings Ratio *Earning Per Share(SAR)
Price per share/Equity book value
Column6
462
26.5517241
Column1
Column2
Column3
Future Value (FV) Calculations
Annual
Amount InvestedInterest
(SAR)
Years
80,000
5%
5
60,000
4%
12
35,500
12%
4
97,000
7%
15
Formula of Calculating FV=PMT*(1+r)^n
Column4
ITEM
1
2
3
4
Column5
PMT
r
n
FV (SAR)
Column6
Column7
Calculations and Presentations
1
2
80000
60000
5%
4%
5
12
102102.525 96061.9331
Column8
d Presentations
3
35500
12%
4
Column9
4
97000
7%
15
55859.9373 267626.059
Present Value (PV) Calculations
Column1
Column2 Column3
Annual
Future Amount (SAR)(FV)
Interest®
Years(T)
900,000
5%
5
478,000
4%
12
279,000
12%
4
440,000
7%
15
Column4
Item
1
2
3
4
Column5
Column6
PV
705173.55
298557.39
177309.544
159476.249
PV=FV/(1+r/m)^mt ;t=no.of years,r=annual interest rate,m=compounding periods per year,FV=Amount given
COMPOUND ANNUITY CALCULATIONS OF ORDINARY ANNUITIES
Column1
Column2
Annual
Present Amount (SAR)(PMT)
Interest®
20,000
5%
42,000
4%
8,000
12%
19,500
7%
m=1
Column3
Years(T)
5
12
4
15
Column4
Item
1
2
3
4
Column5
SAR
SAR
SAR
SAR
Column6
FV
110512.625
631083.829
38234.624
490015.929
PRESENT VALUE OF ANNUITY CALCULATIONS
Column1
Present Amount (SAR)(PMT)
20,000
42,000
8,000
19,500
Column2
Annual
Interest®
12%
5%
4%
2%
Column3
Column4
Years(t)
ITEM
5
12
4
5
1
2
3
4
Column5
Column6
PV
SAR
SAR
SAR
SAR
72095.524
372256.569
29039.1618
91912.4604
Column7
Column8
COMPOUND INTEREST AT NON-ANNUAL RATES
Column1
Column2
Annual
Present Amount (SAR)Interest
20,000
6%
42,000
4%
8,000
12%
FV
Column3
Years
5
12
4
Column4
Compounding
Period
Semi-annually
Quarterly
Monthly
Column5
Column6
Column7
ITEM
r
1
2
3
6%
4%
12%
Column8
Column9
m
PMT
2
4
12
Column10
20,000 SAR
42,000
8,000
Column11
FV
26878.32759
67713.49526
12897.80862

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