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    Sri Arthauli Rezeki

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    Moe Channel
    The document provides common-sized balance sheets and income statements for Patterson Printing Company for the year ending December 31, 2016. The balance sheet shows assets of $33,000 consisting of 48.48% current assets and 51.51% non-current assets. Liabilities total $21,000 consisting of 42.42% current liabilities and 21.21% long-term liabilities. The income statement shows revenues of $30,000 and net income of $700 or 2.33% of revenues. The document also calculates various financial ratios for Carson and BGT and analyzes their differences. It finds that Carson has weaker performance than BGT based on lower current ratio, time interest earned, operating profit margin

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    © All Rights Reserved
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    Sri Arthauli Rezeki

    Uploaded by

    Moe Channel
    67 views4 pages
    The document provides common-sized balance sheets and income statements for Patterson Printing Company for the year ending December 31, 2016. The balance sheet shows assets of $33,000 consisting of 48.48% current assets and 51.51% non-current assets. Liabilities total $21,000 consisting of 42.42% current liabilities and 21.21% long-term liabilities. The income statement shows revenues of $30,000 and net income of $700 or 2.33% of revenues. The document also calculates various financial ratios for Carson and BGT and analyzes their differences. It finds that Carson has weaker performance than BGT based on lower current ratio, time interest earned, operating profit margin

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    454867_Sri Arthauli Rezeki

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    The document provides common-sized balance sheets and income statements for Patterson Printing Company for the year ending December 31, 2016. The balance sheet shows assets of $33,000 consisting of 48.48% current assets and 51.51% non-current assets. Liabilities total $21,000 consisting of 42.42% current liabilities and 21.21% long-term liabilities. The income statement shows revenues of $30,000 and net income of $700 or 2.33% of revenues. The document also calculates various financial ratios for Carson and BGT and analyzes their differences. It finds that Carson has weaker performance than BGT based on lower current ratio, time interest earned, operating profit margin

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    67 views4 pages

    Sri Arthauli Rezeki

    Uploaded by

    Moe Channel
    The document provides common-sized balance sheets and income statements for Patterson Printing Company for the year ending December 31, 2016. The balance sheet shows assets of $33,000 consisting of 48.48% current assets and 51.51% non-current assets. Liabilities total $21,000 consisting of 42.42% current liabilities and 21.21% long-term liabilities. The income statement shows revenues of $30,000 and net income of $700 or 2.33% of revenues. The document also calculates various financial ratios for Carson and BGT and analyzes their differences. It finds that Carson has weaker performance than BGT based on lower current ratio, time interest earned, operating profit margin

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    of 4

    Sri Arthauli Rezeki

    20/454867/EK/22831

    Tugas Manajemen Keuangan

    (4-1)

    a. After discussing your training assignment with a fellow analyst who was hired last year,
    you learn that the first step in your completing the assignment is to prepare a common -
    size balance sheet for Patterson.

    Patterson Printing Company

    Common-size Balance Sheet

    December 31, 2016

    Account Name Amount Percentage of Common


    Sized Balance Sheet
    Cash and marketable securities $ 500 1.51%
    Accounts receivable $ 6,000 18.18%
    Inventory $ 9,500 28.79%
    Total current assets $ 16,000 48.48%
    Net property, plant, and equipment $ 17,000 51.51%
    Total assets $ 33,000 100%
    Accounts payable $ 7,200 21.81%
    Short-term debt $ 6,800 20.60%
    Total current liabilities $ 14,000 42.42%
    Long-term liabilities $ 7,000 21.21%
    Total liabilities $ 21,000 63.63%
    Total common stockholders’ equity $ 12,000 36.36%
    Total liabilities and stockholders’ equity $ 33,000 100%
    b. The second step is to prepare a common-size income statement for the firm.

    Patterson Printing Company


    Common-size Income Statement
    December 31, 2016

    Account Name Amount Percentage of Common


    Sized Income Statement
    Revenues $ 30,000 100%
    Cost of Goods Sold ($20,000) (66.67%)
    Gross Profit $10,000 33.33%
    Operating Expenses ($ 8,000) (26.67%)
    Net Operating Income $ 2,000 6.67%
    Interest Expense ($ 900) (3%)
    Earning Before Taxes $ 1,100 3.67%
    Income Taxex ($ 400) (1.33%)
    Net Income $ 700 2.33%

    (4-26)

    a. Calculate the following ratios for both Carson and BGT:

    Name of Formula Carson BGT


    Tool
    Current 𝐶𝑢𝑟𝑟𝑒𝑛𝑡 𝑎𝑠𝑠𝑒𝑡𝑠 $ 8,000 $ 10,000
    Ratio 𝐶𝑢𝑟𝑟𝑒𝑛𝑡 𝑙𝑖𝑎𝑏𝑖𝑙𝑖𝑡𝑒𝑠 $ 7,000 $ 8,000
    = 1.14 𝑡𝑖𝑚𝑒𝑠 = 1.25 𝑡𝑖𝑚𝑒𝑠
    Time 𝑁𝑒𝑡 𝑜𝑝𝑒𝑟𝑎𝑡𝑖𝑛𝑔 𝑖𝑛𝑐𝑜𝑚𝑒 𝑜𝑟 𝐸𝐵𝐼𝑇 $ 4,000 $ 16,000
    Interest 𝐼𝑛𝑡𝑒𝑟𝑒𝑠𝑡 𝐸𝑥𝑝𝑒𝑛𝑠𝑒 $ 1,150 $ 550
    Earned = 3.48 𝑡𝑖𝑚𝑒𝑠 = 29.09 𝑡𝑖𝑚𝑒𝑠
    Inventory 𝐶𝑜𝑠𝑡 𝑜𝑓 𝐺𝑜𝑜𝑑𝑠 𝑆𝑜𝑙𝑑 $ 36,000 $ 42,000
    Turnover 𝐼𝑛𝑣𝑒𝑛𝑡𝑜𝑟𝑦 $ 1,500 $ 2,500
    = 24 𝑡𝑖𝑚𝑒𝑠 = 16.8 𝑡𝑖𝑚𝑒𝑠
    Total 𝑆𝑎𝑙𝑒𝑠 $ 48,000 $ 70,000
    Asset 𝑇𝑜𝑡𝑎𝑙 𝐴𝑠𝑠𝑒𝑡𝑠 $ 24,000 $ 35,000
    Turnover = 2 𝑡𝑖𝑚𝑒𝑠 = 2 𝑡𝑖𝑚𝑒𝑠

    Operating 𝑁𝑒𝑡 𝑜𝑝𝑒𝑟𝑎𝑡𝑖𝑛𝑔 𝑖𝑛𝑐𝑜𝑚𝑒 𝑜𝑟 𝐸𝐵𝐼𝑇 $ 4,000 $ 16,000


    Profit 𝑥 100% 𝑥 100% 𝑥 100%
    𝑇𝑜𝑡𝑎𝑙 𝑎𝑠𝑠𝑒𝑡𝑠 $ 48,000 $ 70,000
    Margin = 8.33 % = 22.85%
    Operating 𝑁𝑒𝑡 𝑜𝑝𝑒𝑟𝑎𝑡𝑖𝑛𝑔 𝑖𝑛𝑐𝑜𝑚𝑒 𝑜𝑟 𝐸𝐵𝐼𝑇 $ 4,000 $ 16,000
    Return on 𝑥 100% 𝑥 100% 𝑥 100%
    𝑇𝑜𝑡𝑎𝑙 𝐴𝑠𝑠𝑒𝑡𝑠 $ 24,000 $ 35,000
    Assets = 16.67% = 45.71%
    Debt 𝑡𝑜𝑡𝑎𝑙 𝑙𝑖𝑎𝑏𝑖𝑙𝑖𝑡𝑒𝑠 $ 15,000 $ 12,000
    Ratio 𝑥 100% 𝑥 100% 𝑥 100%
    𝑇𝑜𝑡𝑎𝑙 𝑎𝑠𝑠𝑒𝑡𝑠 $ 24,000 $35,000
    = 62.5 % = 34.29%
    Average 𝐴𝑐𝑐𝑜𝑢𝑛𝑡𝑠 𝑅𝑒𝑐𝑒𝑖𝑣𝑎𝑏𝑙𝑒𝑠 $ 4,500 $ 6,000
    Collectio 𝐴𝑛𝑛𝑢𝑎𝑙 𝑐𝑟𝑒𝑑𝑖𝑡 𝑠𝑎𝑙𝑒𝑠 48,000 $70,000
    $
    n Period 365 𝑑𝑎𝑦𝑠 365 365
    = 34.22 𝑑𝑎𝑦𝑠 = 31.28 𝑑𝑎𝑦𝑠
    Fixed 𝑆𝑎𝑙𝑒𝑠 $ 48,000 $ 70,000
    Asset 𝑁𝑒𝑡 𝑝𝑙𝑎𝑛𝑡 𝑎𝑛𝑑 𝑒𝑞𝑢𝑖𝑝𝑚𝑒𝑛𝑡 $ 16,000 $ 25,000
    Turnover = 3 𝑡𝑖𝑚𝑒𝑠 = 2.8 𝑡𝑖𝑚𝑒𝑠
    Return on 𝑁𝑒𝑡 𝑖𝑛𝑐𝑜𝑚𝑒 $ 1,710 $ 9,720
    𝑥 100% 𝑥 100% 𝑥 100%
    Equity 𝐶𝑜𝑚𝑚𝑜𝑛 𝐸𝑞𝑢𝑖𝑡𝑦 $ 9,000 $23,000
    = 19% = 40.30%

    b. Analyze the differences you observe between the two firms. Comment on what you
    view as weaknesses in the performance of Carson as compared to that of BGT that
    Carson’s management might focus on to improve its operations

    Name of tool Carson’s BGT’s Analysis


    Performance Performance
    Current Ratio Worse Better BGT lebih unggul dalam hal likuiditas
    jangka pendek daripada Carson
    Time Interest Earned Worse Better Time Interest Earned Carson lebih
    rendah daripada BGT yang nantinya
    akan berpengaruh terhadap margin
    keuntungan
    Inventory Turnover Better Worse Carson lebih efisien dalam hal
    perputaran aset yang bertujuan
    menambah pendapatan
    Total Asset Turnover Same Same Carson dan BGT memiliki Total Asset
    Turnover yang sama
    Operating Profit Worse Better Operating Profit Margin Carson lebih
    Margin rendah daripada BGT. Hal ini
    mengindikasikan bahwa kinerja dari
    Carson kurang efisien
    Operating Return on Worse Better Operating Return on Assets Carson
    Assets lebih rendah daripada BGT. Hal ini
    mengindikasikan bahwa kinerja dari
    Carson kurang efisien
    Debt Ratio Worse Better Debt ratio Carson lebih tinggi daripada
    BGT. Hal ini akan menyebabkan Carson
    menghasilkan utang yang lebih tinggi
    sehingga keuntungan yang diperoleh
    lebih sedikit
    Average Collection Worse Better Carson memiliki nilai rasio yang lebih
    Period tinggi daripada BGT. Hal ini
    menunjukkan bahwa Carson
    membutuhkan waktu yang lebih lama
    dalam menagih piutang penjualannya
    Fixed Asset Better Worse Carson lebih efisien mengelola aset yang
    Turnover dimiliki daripada BGT
    Return on Equity Worse Better Return on Equity Carson lebih rendah
    daripada BGT yang menjadi salah satu
    penyebab rendahnya kinerja yang
    dihasilkan oleh Carson

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