This chapter illustrated the calculation of financial ratios using the financial statements of Chloe’sCoatS, a manufacturer and marketer of clothing. Tinker’sTrouserS also manufactures clothing. Given selected financial data for Tinker’sTrouserS, calculate the following financial ratios:

a) Liquidity ratios: the current ratio and quick ratio

b) Activity ratios: inventory turnover, receivables turnover, days sales outstanding (average collection period), fixed asset turnover, and total asset turnover

c) Profitability ratios: operating profit margin, net profit margin, return on assets, and return on equity

d) Leverage ratios: debt/equity ratio, debt ratio (total debt/assets)

e) Coverage ratios: times-interest-earned Compare the numerical results with the values for ratios calculated for Chloe’sCoatS in the body of this chapter. Are there any obvious differences?
Balance Sheet (as of December 31, 20X1)
Current assets Cash and cash equivalents $1,330 Receivables 994 Inventories 1,329 Other current assets 229 Total current assets 3,882 Plant and equipment 2,484 Other noncurrent assets 5,717 Total assets $11,983 Current liabilities $2,648 Long-term liabilities 6,411 Equity 2,811 Total liabilities plus equity (Prior year’s inventory: $1,452)
$11,983 Income Statement (for the fiscal year ending December 31, 20X1)
Sales $11,649 Gross profit 7,650 Operating income 1,460 Interest expense 294 Taxes 243 Net income $ 923