Calculate all the ratios, for which industry figures are available below, for Nederland and compare the firm’s ratios with the industry ratios. (Round current ratio, quick ratio, debt ratio, long term debt ratio answers to 2 decimal places, e.g. 12.25 and
The following are the financial statements for Nederland Consumer Products Company for the fiscal year ended September 30, 2011.
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Nederland Consumer Products Company
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|||
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Net sales
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$
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62,141
|
|
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Cost of goods sold
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26,906
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||
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Gross margin
|
$
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35,235
|
|
|
Marketing, research, administrative exp.
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15,715
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||
|
Depreciation
|
776
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||
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Operating income(loss)
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$
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18,744
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|
|
Interest expense
|
499
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||
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Earnings(loss) before income taxes
|
$
|
18,245
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|
|
Income taxes
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5,623
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||
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Net earnings(loss)
|
$
|
12,622
|
|
|
Nederland Consumer Products Company
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||||||||
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Assets:
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Liabilities and Stockholder’s Equity:
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|||||||
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Cash and marketable securities
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$
|
6,807
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Accounts payable
|
$
|
2,776
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|||
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Investment securities
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353
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Accrued and other liabilities
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7,780
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|||||
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Accounts receivable
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3,288
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Taxes payable
|
2,047
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|||||
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Total inventories
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5,376
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Debt due within one year
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7,490
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|||||
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Deferred income taxes
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882
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|||||||
|
Prepaid expenses & other receivables
|
1,991
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|||||||
|
Total current assets
|
$
|
18,697
|
Total current liabilities
|
$
|
20,093
|
|||
|
Property, plant, and equip., at cost
|
30,215
|
Long-term debt
|
12,217
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|||||
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Less: Accumulated depreciation
|
9,653
|
Deferred income taxes
|
2,543
|
|||||
|
Net plant and equipment
|
$
|
20,562
|
Other non-current liabilities
|
3,504
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||||
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Net goodwill & other intangible assets
|
23,970
|
Total liabilities
|
$
|
38,357
|
||||
|
Other non-current assets
|
1,622
|
Convertible Class A preferred stock
|
1,696
|
|||||
|
Common stock
|
1,608
|
|||||||
|
Retained earnings
|
23,190
|
|||||||
|
Total stockholders’ equity (deficit)
|
$
|
26,494
|
||||||
|
Total assets
|
$
|
64,851
|
Total liabilities and stockholders’ equity
|
$
|
64,851
|
|||
Calculate all the ratios, for which industry figures are available below, for Nederland and compare the firm’s ratios with the industry ratios. (Round current ratio, quick ratio, debt ratio, long term debt ratio answers to 2 decimal places, e.g. 12.25 and other answers to 1 decimal place, e.g.12.5 or 12.5%.)
|
Industry Average
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||||||
|
Current Ratio
|
2.05
|
[removed]
|
times
|
|||
|
Quick Ratio
|
0.78
|
[removed]
|
times
|
|||
|
Gross margin
|
23.9
|
%
|
[removed]
|
%
|
||
|
Net profit margin
|
12.3
|
%
|
[removed]
|
%
|
||
|
Debt ratio
|
0.23
|
[removed]
|
times
|
|||
|
Long-term debt to equity
|
0.98
|
[removed]
|
times
|
|||
|
Interest coverage
|
5.62
|
[removed]
|
||||
|
ROA
|
5.3
|
%
|
[removed]
|
%
|
||
|
ROE
|
18.8
|
%
|
[removed]
|
%
|
||
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