FINANCIAL
STATEMENT ANALYSIS 1-49
4
PROGRESS CHECK 1.4
Directions: Use the following Balance Sheet and Income Statement to answer the
questions about financial ratios.
Fruit Packing, Inc. Balance Sheet
December 31, 1993
(In Millions $)
ASSETS
LIABILITIES AND EQUITY
Cash
7.4
Accounts Payable - Fruit
10.2
Marketable Securities
0.6
Accounts Payable - Material
9.6
Accounts Receivable
23.7
Notes Payable
23.0
Raw Goods Inventory
19.5
Accrued Wages and Taxes
1.7
Finished Goods Inventory
22.4
Other Current Liabilities
0.6
Prepaid Expenses
1.5
Total Current Liabilities
45.1
Other Current Assets
0.8
Total Current Assets
75.9
Long-term Debt
45.1
Preferred Stock
7.8
Gross Fixed Assets
101.2
Total Long-term Liabilities
98.0
Less Depreciation
19.9
Net Fixed Assets
81.3
Common Stock (6.5 Mil. Outst.)
15.1
Retained Earnings
44.1
Total Common Equity
59.2
Total Assets
157.2
Total Liabilities and Equity
157.2
Fruit Packing, Inc. Income Statement
December 31, 1993
(In Millions $)
Net Sales
150.6
Operating Expenses
Depreciation
101.2
3.1
EBIT
Interest Expense
46.3
11.5
Earnings Before Taxes
Taxes (@ 40%)
34.8
13.9
Net Income to Shareholders
Preferred Dividends
20.9
6.3
Net Income to Common
Common Dividends
14.6
12.0
Earnings Retained
2.6