(SOLVED) Which company has the least efficient SG&A/Sales ratio? Select: 1Save Answer Andrews Digby Baldwin Chester

Discipline: Accounting

Type of Paper: Question-Answer

Academic Level: Undergrad. (yrs 3-4)

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Question

Which company has the least efficient SG&A/Sales ratio? Select: 1Save Answer Andrews Digby Baldwin Chester

Cash Flow Statement Survey	Andrews	Baldwin	Chester	Digby
Cash flows from operating activities
Net Income (Loss)	$11,663	$840	$26,932	$3,269
Adjustment for non-cash items:
Depreciation	$7,152	$17,509	$9,711	$15,533
Extraordinary gains/losses/writeoffs	$0	$0	$0	$0
Changes in current assets and liabilities:
Accounts payable	($2,655)	$782	$1,859	($1,096)
Inventory	$10,081	$4,218	($2,799)	$1,857
Accounts receivable	$1,853	($3,370)	($3,494)	($151)
Net cash from operations	$28,093	$19,979	$32,209	$19,413

Cash flows from investing activities
Plant improvements (net)	($1,056)	($46,880)	($31,600)	($17,900)
Cash flows from financing activities
Dividends paid	($6,768)	$0	($2,202)	$0
Sales of common stock	$1,200	$16,807	$0	$7,457
Purchase of common stock	$0	$0	($1,979)	$0
Cash from long term debt issued	$0	$22,204	$8,312	$2,785
Early retirement of long term debt	$0	$0	$0	$0
Retirement of current debt	($11,300)	($33,110)	($27,970)	($41,872)
Cash from current debt borrowing	$2,000	$25,753	$20,416	$28,857
Cash from emergency loan	$0	$0	$0	$0
Net cash from financing activities	($14,868)	$31,655	($3,423)	($2,773)

Net change in cash position	$12,169	$4,754	($2,813)	($1,260)

Balance Sheet Survey	Andrews	Baldwin	Chester	Digby
Cash	$51,425	$31,774	$33,278	$42,733
Accounts Receivable	$13,084	$14,423	$16,819	$12,361
Inventory	$3,657	$10,974	$17,534	$9,185
Total Current Assets	$68,166	$57,170	$67,631	$64,280

Plant and equipment	$107,274	$262,640	$145,660	$233,000
Accumulated Depreciation	($65,525)	($87,709)	($58,601)	($92,976)
Total Fixed Assets	$41,749	$174,931	$87,059	$140,024

Total Assets	$109,915	$232,102	$154,690	$204,304

Accounts Payable	$7,975	$8,725	$10,445	$7,580
Current Debt	$2,000	$25,753	$20,416	$28,857
Long Term Debt	$15,909	$102,743	$33,678	$87,009
Total Liabilities	$25,884	$137,221	$64,538	$123,446

Common Stock	$25,280	$51,777	$10,334	$43,382
Retained Earnings	$58,751	$43,104	$79,818	$37,476
Total Equity	$84,031	$94,881	$90,151	$80,858

Total Liabilities & Owners' Equity	$109,915	$232,102	$154,690	$204,304

Income Statement Survey	Andrews	Baldwin	Chester	Digby
Sales	$159,186	$175,476	$204,637	$150,395
Variable Costs (Labor, Material, Carry)	$107,552	$111,685	$126,385	$95,179
Depreciation	$7,152	$17,509	$9,711	$15,533
SGA (R&D, Promo, Sales, Admin)	$18,591	$20,688	$13,324	$13,745
Other (Fees, Writeoffs, TQM, Bonuses)	$5,560	$7,951	$6,695	$6,012
EBIT	$20,331	$17,643	$48,522	$19,926
Interest (Short term, Long term)	$2,021	$16,325	$6,242	$14,795
Taxes	$6,408	$461	$14,798	$1,796
Profit Sharing	$238	$17	$550	$67
Net Profit	$11,663	$840	$26,932	$3,269

Andrews	Baldwin	Chester	Digby
ROS	7.3%	0.5%	13.2%	2.2%
Asset Turnover	1.45	0.76	1.32	0.74
ROA	10.6%	0.4%	17.4%	1.6%
Leverage (Assets/Equity)	1.3	2.4	1.7	2.5
ROE	13.9%	0.9%	29.9%	4.0%
Emergency Loan	$0	$0	$0	$0
Sales	$159,185,539	$175,476,345	$204,636,904	$150,395,478
EBIT	$20,331,207	$17,643,254	$48,521,549	$19,926,428
Profits	$11,663,403	$839,811	$26,932,319	$3,268,566
Cumulative Profit	$21,415,847	$4,154,601	$51,835,143	$7,471,805
SG&A / Sales	11.7%	11.8%	6.5%	9.1%
Contrib. Margin %	32.4%	36.4%	38.2%	36.7%

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