Selected year-end financial statements of Steele Corporation follow. (All sales were on credit; selected balance sheet amounts at December 31, 2008, were inventory, $55,900; total assets, $249,400; common stock, $105,000; and retained earnings, $17,748.)

STEELE CORPORATION

Income Statement

For Year Ended December 31, 2009

Sales . . . . . . . . . . . . . . . . . . . $447,600

Cost of goods sold . . . . . . . . . 298,150

Gross profit . . . . . . . . . . . . . . 149,450

Operating expenses . . . . . . . . 98,500

Interest expense . . . . . . . . . . 4,600

Income before taxes . . . . . . . 46,350

Income taxes . . . . . . . . . . . . . 18,672

Net income . . . . . . . . . . . . . . $ 27,678

* 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:

STEELE CORPORATION Balance Sheet December 31, 2009 Assets Cash .. Short-term Investments Accounts recelvable, net 28,800 Income taxes payable Notes recelvable (trade)* 8.000 Long-term note payable, secured Merchandise Inventory Prepald expenses . Plant assets, net . . . . . . . . . . . . . . 150.300 Retained earnings . . . . . . . . . . . . . . Total assets . . . . . . . . . . .. $240,000 Total liabilities and equity ·······.. Liabilitles and Equity 8,000 Accounts payable .j.... 25,500 3.000 4.000 .. 8,000 Accrued wages payable... 34,150 by mortgage on plant assets . . .. 63,400 2.750 Common stock, $5 par value .. . .105,000 39.100 $240,000 . .