Refer to the financial statements of International Corporation in Appendix A at the back of the book.

Calculate the amount of the following ratios for 19X1.

(1) Rate of return on assets. Assume an income tax rate of 40 percent in computing aftertax interest charges. In computing income before charges to suppliers of capital, do not subtract the \(\$ 2,452,000\) shown as the minority interest in net income of consolidated subsidiaries. That is, add the \(\$ 2,452,000\) back to net income. Minority interest is explained in Chapter 12.

(2) Rate of return on common stock equity.

(3) Accounts receivable turnover (assuming that all sales are made on account).

(4) Inventory turnover (cost of uncompleted contracts in excess of related billings is to be ignored in this calculation).

(5) Plant asset turnover.

(6) Current ratio on December 31, 19X0, and December 31, 19X1

(7) Quick ratio on December 31, 19X0, and December 31, 19X1 (assuming that quick assets includes cash, marketable securities, and customer receivables).
(8) Debt-equity ratio on December 31, 19X0, and December 31, 19X1 (assuming that minority interest is considered to be part of shareholders' equity).
(9) Times interest charges earned ratio (also add back the minority interest in net income of consolidated subsidiaries and subtract the \(\$ 10,000,000\) income tax savings from losses of discontinued operations).