Jackson Manufacturing has the following operating results for 2013.
In addition, the company paid dividends in both 2012 and 2013 of $100,000 per year and made capital expenditures in both years of $45,000 per year. The company's stock price in 2012 was $10 and $12 in 2013. The industry average earnings multiple for the industry was 10 in 2013 and the free cash flow and sales multiples were 20 and 2, respectively. The company is publicly owned and has 1,050,000 shares of outstanding stock at the end of 2013. The industry average ratios for Jackson's industry were as follows in the most recent year.
Exhibit A: Industry Ratios for the Jackson Company Required:
1. Calculate the ratios In Exhibit A for Jackson Company for 2013, group them by category (liquidity, profitability) and develop a brief overview for the liquidity and profitability of the Jackson Company at the end of 2013.
2. Complete a Business Valuation for the Jackson Company based on 2013 financial statement information.

Question

Jackson Manufacturing has the following operating results for 2013.
  In addition, the company paid dividends in both 2012 and 2013 of $100,000 per year and made capital expenditures in both years of $45,000 per year. The company's stock price in 2012 was $10 and $12 in 2013. The industry average earnings multiple for the industry was 10 in 2013 and the free cash flow and sales multiples were 20 and 2, respectively. The company is publicly owned and has 1,050,000 shares of outstanding stock at the end of 2013. The industry average ratios for Jackson's industry were as follows in the most recent year.
Exhibit A: Industry Ratios for the Jackson Company  Required:
1. Calculate the ratios In Exhibit A for Jackson Company for 2013, group them by category (liquidity, profitability) and develop a brief overview for the liquidity and profitability of the Jackson Company at the end of 2013.
2. Complete a Business Valuation for the Jackson Company based on 2013 financial statement information.

Quizplus · Accepted Answer

The Answer of Jackson Manufacturing has the following operating results for 2013.
  In addition, the company paid dividends in both 2012 and 2013 of $100,000 per year and made capital expenditures in both years of $45,000 per year. The company's stock price in 2012 was $10 and $12 in 2013. The industry average earnings multiple for the industry was 10 in 2013 and the free cash flow and sales multiples were 20 and 2, respectively. The company is publicly owned and has 1,050,000 shares of outstanding stock at the end of 2013. The industry average ratios for Jackson's industry were as follows in the most recent year.
Exhibit A: Industry Ratios for the Jackson Company  Required:
1. Calculate the ratios In Exhibit A for Jackson Company for 2013, group them by category (liquidity, profitability) and develop a brief overview for the liquidity and profitability of the Jackson Company at the end of 2013.
2. Complete a Business Valuation for the Jackson Company based on 2013 financial statement information.

Jackson Manufacturing Has the Following Operating Results for 2013