Ratio Computations and Discussion Costner Company has been operating for several years, and on December 31, 2010,
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Ratio Computations and Discussion Costner Company has been operating for several years, and on December 31, 2010, presented the following balance sheet. The net income for 2010 was $25,000. Assume that total assets are the same in 2009 and 2010. Compute each of the following ratios. For each of the four indicate the manner in which it is computed and its significance as a tool in the analysis of the financial soundness of the company.
(a) Current ratio.
(c) Debt to total assets.
(b) Acid-test ratio.
(d) Rate of return onassets.
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a b Current ratio Current Assets Current Liabilities 210000 70000 300 Current ratio measures ...View the full answer
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Related Book For 
Intermediate Accounting
ISBN: 978-0470423684
13th Edition
Authors: Donald E. Kieso, Jerry J. Weygandt, And Terry D. Warfield
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