Selected year-end financial statements of Cadet Corporation follow. (All sales were on credit; selected balance sheet amounts at December 31, 2008, were inventory, $56,900; total assets, $219,400; common stock, $85,000; and retained earnings, $52,348.)

CADET CORPORATION

Income Statement

For Year Ended December 31, 2009

Sales . . . . . . . . . . . . . . . . . . . $456,600

Cost of goods sold . . . . . . . . 297,450

Gross profit . . . . . . . . . . . . . 159,150

Operating expenses . . . . . . . . 99,400

Interest expense . . . . . . . . . . 3,900

Income before taxes . . . . . . . 55,850

Income taxes . . . . . . . . . . . . . 22,499

Net income . . . . . . . . . . . . . . $ 33,351

* These are short-term notes receivable arising from customer (trade) sales.
Required
Compute the following:
(1) Current ratio,
(2) Acid-test ratio,
(3) Days' sales uncollected,
(4) Inventory turnover,
(5) Days' sales in inventory,
(6) Debt-to-equity ratio,
(7) Times interest earned,
(8) Profit margin ratio,
(9) Total asset turnover,
(10) Return on total assets, and
(11) Return on common stockholders'equity.

Transcribed Image Text:

CADET CORPORATION Balance Sheet December 31,2009 Assets Llabilities and Equity Short-term Investments Accounts recelvable, net.. Notes recelvable (trade)* 7.000 Long-term note payable, secured Merchandise Inventory.. Prepaid expenses.... 8,200 Accrued wages payable ._ . 29,400 4.400 3.700 34,150 by mortgage on plant assets 2,700 Common 67.400 85.000 Total assets$248,750 llitles and equity .$248,750