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Department Stores

In: Business and Management

Submitted By cwlibra357
Words 607
Pages 3
ABC Sporting Goods
Part 1- Complete the following ratio analysis for ABC sporting Goods Profit & Loss
Profit for 2006 was-86,318,
Profit for 2007 was-113,799
Profit for 2008 was-126,472
Profit for 2009 was-75,252
Profit for 2010 was-67,955
Between 2008-2009 ABC Loss 51,220
Between 2009-2010 ABC Loss 7,297
Return on sales was 7.52%
Return on Assets was 27.34%
Return on Net Worth was 83.69%
Quick Ratio was 0.48
Current Ratio was 1.59
Inventory turnover (gross sales divided by inventory) was 5.93
Assets to sales Ratio was 0.28
Total liabilities to net worth was 2.06
Part II Estimate the business value using BizStats. –Valuation Rule for Sporting Goods Store at BizStats.
These are the BizStats I found Profitable Sole Proprietorships | 51.40% | Non-Profitable Sole Proprietorships | 48.60% | Income Among Profitable Sole Proprietorships | 80.00% | Income Among Non-Profitable Sole Proprietorships | 20.00% | Average Net Profit | 11.50% | Valuation Rule of Thumb Industry | "Rule of Thumb" Valuation | Accounting Firms | 100–125% of annual revenues | Auto Dealers (New Cars) | 0–10% of annual sales + inventory | Book Stores | 15% of annual sales + inventory | Coffee Shops (Gourmet) | 40% of annual sales + inventory | Day Care Centers | 45–50% of annual sales incl. inventory | Dental Practices | 60–65% of annual revenues incl. inventory | Dry Cleaners | 70–80% of annual sales + Inventory | Engineering Services | 40–45% of annual revenues | Flower Shops | 30–35% of annual sales + inventory | Food Shops (Gourmet) | 30% of annual sales + inventory | Gas Stations (w/o C-Store) | 15–20% of annual sales + inventory | Gift/Card Shops | 35% of annual sales incl. inventory | Grocery Store (Supermarket) | 15% of annuals sales + inventory | Hardware Stores | 45% of annual sales incl. inventory | Insurance…...

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