The comparative statements of Marti Rosen Company are presented here:

On July 1, 1998, 1,000 shares were repurchased and canceled. All sales were on account.Net cash provided by operating activities was \(\$ 36,000\).

InstructionsCompute the following ratios for 1998:

(a) Earnings per share(i) Average days in inventory

(b) Return on common stockholders' equity(j) Times interest earned

(c) Return on assets(k) Asset turnover

(d) Current(l) Debt to total assets

(e) Acid-test(m) Current cash debt coverage

(f) Receivables turnover(n) Cash return on sales(g) Average collection period(o) Cash debt coverage(h) Inventory turnover InstructionsCompute the following ratios for 1998:

(a) Earnings per share(i) Average days in inventory

(b) Return on common stockholders' equity(j) Times interest earned

(c) Return on assets(k) Asset turnover

(d) Current(l) Debt to total assets

(e) Acid-test(m) Current cash debt coverage

(f) Receivables turnover(n) Cash return on sales(g) Average collection period(o) Cash debt coverage(h) Inventory turnover

Transcribed Image Text:

MARTI ROSEN COMPANY Income Statement For the Years Ended December 31 1998 1997 Net sales $660,000 $624,000 Cost of goods sold 440,000 405,600 Gross profit 220,000 218,400 Selling and administrative expense 143,880 149,760 Income from operations 76,120 68,640 Other expenses and losses Interest expense Income before income taxes Income tax expense Net income 7,920 7,200 68,200 61,440 25,300 24,000 $ 42,900 $ 37,440