Compute the specified ratios using Bryce Companys balance sheet at December 31, 2008. Assets Cash ............... $

Question:

Compute the specified ratios using Bryce Company’s balance sheet at December 31, 2008.

Assets

Cash ............... $ 18,000

Marketable securities ......... 8,000

Accounts receivable ......... 13,000

Inventory ............. 11,000

Property and equipment ...... 170,000

Accumulated depreciation ..... (12,500)

Total assets ............ $207,500

Equities

Accounts payable ......... $ 8,500

Current notes payable ......... 3,500

Mortgage payable .......... 7,500

Bonds payable ............ 21,500

Common stock, $50 par ....... 110,000

Paid-in capital in excess of par value ... 4,000

Retained earnings .......... 52,500

Total liabilities and stockholders’ equity . $207,500

The average number of common stock shares outstanding during 2008 was 880 shares. Net income for the year was $15,000.

Required

Compute each of the following:

a. Current ratio

b. Earnings per share

c. Quick (acid-test) ratio

d. Return on investment

e. Return on equity

f. Debt to equity ratio

Common Stock
Common stock is an equity component that represents the worth of stock owned by the shareholders of the company. The common stock represents the par value of the shares outstanding at a balance sheet date. Public companies can trade their stocks on... Balance Sheet
Balance sheet is a statement of the financial position of a business that list all the assets, liabilities, and owner’s equity and shareholder’s equity at a particular point of time. A balance sheet is also called as a “statement of financial... Par Value
Par value is the face value of a bond. Par value is important for a bond or fixed-income instrument because it determines its maturity value as well as the dollar value of coupon payments. The market price of a bond may be above or below par,...