Rinker Corporation’s comparative balance sheet is presented below 

Rinker’s 2024 income statement included net sales of $120,000, cost of goods sold of $70,000, and profit of $14,000. 

Instructions 

Calculate the following ratios for 2024. 

a. Current ratio 

b. Acid-test ratio  

c. Receivables turnover 

d. Collection period

e. Inventory turnover

f. Days sales in inventory

g. Profit margin 

h. Asset turnover

i. Return on assets  

j. Return on equity  

k. Debt to total assets 

Transcribed Image Text:

Cash Accounts receivable Inventory Land RINKER CORPORATION Balance Sheet December 31 Buildings Accumulated depreciation-buildings Total Accounts payable Common shares Retained earnings Total 2024 $ 5,300 21,200 9,000 20,000 70,000 (15,000) $110,500 $ 10,370 75,000 25,130 $110,500 2023 $ 3,700 23,400 7,000 26,000 70,000 (10,000) $120,100 $ 31,100 69,000 20,000 $120,100