Selected year-end financial statements of McCord Corporation follow. (All sales were on credit; selected balance sheet amounts
Question:
Selected year-end financial statements of McCord Corporation follow. (All sales were on credit; selected balance sheet amounts at December 31, 2010, were inventory, $32,400; total assets, $182,400; common stock, $90,000; and retained earnings, $31,300.)
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.
Financial statements are the standardized formats to present the financial information related to a business or an organization for its users. Financial statements contain the historical information as well as current period’s financial...
Transcribed Image Text:
McCORD CORPORATION Income Statement For Year Ended December 31,2011 Sales Cost of goods sold Gross profit Operating expenses Interest expense Income before taxes Income taxes....--cr Net income.. $348.600 229,150 119.450 52.500 3.100 63.850 15.800 48,050 Balance Sheet December 31, 2011 Assets Cash Short-term investments Accounts receivable, net Notes receivable (trade)* Merchandise inventor)y Prepaid expenses Plant assets, net . Total assetsn*. Liabilities and Equity $ 16,500 2.200 2,300 .. 9.000 Accounts payable . 7.400 Accrued wages payable.. 28.200 Income taxes payable 3,500 Long-term note payable, secured 31150 by mortgage on plant assets 1.650 Common stock 62,400 90,000 59.800 $233,200 Retained earnings. Total liabilities and $233,200
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Related Book For
Fundamental Accounting Principles
ISBN: 978-0078110870
20th Edition
Authors: John J. Wild, Ken W. Shaw, Barbara Chiappetta
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