Chapter 11
Financial Statement Analysis
579
AP-11B (
4
)
Selected information for the Universal Company is as follows.
December 31
2016
2015
2014
Common Shares
$840,000 $648,000 $550,000
Retained Earnings
370,000
248,000
150,000
Net Income for the Year
240,000
122,000
98,000
Required
a) Calculate the return on equity ratio for 2016 and 2015.
b) Has the Universal Company’s performance improved in 2016? Explain using the return on
equity ratio.
AP-12B (
5
)
Below is selected financial information for Swingline Inc.
2016
2015
2014
2013
Ending Inventory
4,850
5,626
5,723
6,014
Cost of Goods Sold
68,950
72,398
65,503
71,708
Required
a) Calculate the following ratios for 2016, 2015 and 2014.
2016
2015
2014
Inventory Days-on-Hand
Inventory Turnover
