LIVE CHAT
Place An Order

Want To Save Your Precious Time But Still Get High-Quality Work?     Most Definitely YES!

ScholarMatic | 24/7 Homework Help

ScholarMatic Will Help You Write Your Essays and Term Papers

Answered » You can buy a ready-made answer or pick a professional tutor to order an original one.

Please provide step by step instructions

by | Dec 1, 2023 | Posted Questions

RNA Inc. manufactures a variety of consumer products. The company’s founders have run the company for 30 years and are now interested in retiring. Consequently, they are seeking a purchaser who will continue its operations, and a group of investors, Morgan Inc., is looking into the acquisition of RNA. To evaluate its financial stability and operating efficiency, RNA was requested to provide the latest financial statements and selected financial ratios. Summary information provided by RNA is as follows.

RNA INC.
INCOME STATEMENT
FOR THE YEAR ENDED NOVEMBER 30, 2015
(IN THOUSANDS)
Sales (net) $ 30,550
Interest income 550
Total revenue 31,100
Costs and expenses
Cost of goods sold 17,650
Selling and administrative expenses 3,600
Depreciation and amortization expense 1,940
Interest expense 950
Total costs and expenses 24,140
Income before taxes 6,960
Income taxes 2,784
Net income $ 4,176

RNA INC.
BALANCE SHEET
AS OF NOVEMBER 30
(IN THOUSANDS)
2015 2014
Cash $ 450 $ 550
Short-term investments (at cost) 350 250
Accounts receivable (net) 3,250 2,950
Inventory 6,050 5,450
Total current assets 10,100 9,200
Property, plant, & equipment (net) 7,150 7,050
Total assets $ 17,250 $ 16,250
Accounts payable $ 3,750 $ 3,450
Income taxes payable 950 850
Accrued expenses 1,750 1,450
Total current liabilities 6,450 5,750
Long-term debt 2,050 1,850
Total liabilities 8,500 7,600
Common stock ($1 par value) 2,750 2,750
Paid-in capital in excess of par 1,050 1,050
Retained earnings 4,950 4,850
Total stockholders’ equity 8,750 8,650
Total liabilities and stockholders’ equity $ 17,250 $ 16,250

SELECTED FINANCIAL RATIOS
RNA INC. Current
Industry
Average
2014 2013
Current ratio 1.60 1.61 1.68
Acid-test ratio 0.65 0.64 0.78
Times interest earned 8.6 8.55 8.5
Profit margin on sales 13.25% 12.15% 13.05%
Asset turnover 1.89 1.88 1.89
Inventory turnover 3.22 3.26 3.23

(a)

Calculate a new set of ratios for the fiscal year 2015 for RNA based on the financial statements presented. (Round answers to 2 decimal places, e.g. 52.75.)

Current ratio Please provide step by step instructions.wiley.com/edugen/art2/common/pixel.gif”>.57″> : 1
Acid-test ratio Please provide step by step instructions.wiley.com/edugen/art2/common/pixel.gif”> : 1
Times interest earned Please provide step by step instructions.wiley.com/edugen/art2/common/pixel.gif”>
Profit margin on sales Please provide step by step instructions.wiley.com/edugen/art2/common/pixel.gif”> %
Asset turnover Please provide step by step instructions.wiley.com/edugen/art2/common/pixel.gif”> times
Inventory turnover Please provide step by step instructions.wiley.com/edugen/art2/common/pixel.gif”> times

Please provide step by step instructions.wiley.com/edugen/art2/common/pixel.gif”>
Please provide step by step instructions.wiley.com/edugen/art2/common/pixel.gif”>
Please provide step by step instructions.wiley.com/edugen/art2/common/pixel.gif”>
ScholarMatic: Explanation & Answer

Your ready answer from a verified tutor is just a click away for as little as $14.99

  

Click Order Now to get 100% Original Answer Customized to your instructions!

HOME TO CERTIFIED WRITERS

Why Place An Order With Us?

  • Certified Editors
  • 24/7 Customer Support
  • Profesional Research
  • Easy to Use System Interface
  • Student Friendly Pricing

Have a similar question?

 

Your Paper Is In Safe Hands

PLAGIRAISM FREE PAPERS

All papers we provide are well-researched, properly formatted and cited.

TOP QUALITY

All papers we provide are well-researched, properly formatted and cited.

HIGHLY SECURED

All papers we provide are well-researched, properly formatted and cited.

ScholarMatic: Get Started

Assignment Writing Service

Feel safe and secure when placing an order on our portal!
Fruitful cooperation begins with solid guarantees, and we are professional enough to promise perfect results. Let’s get it started!

Write My Paper