Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

2. A summary of data from the income statements and balance sheets for Roman Construction Supply, Inc., for 2010 and 2009 appears below. 2010 2009

2. A summary of data from the income statements and balance sheets for Roman Construction Supply, Inc., for 2010 and 2009 appears below. 2010 2009 Current assets Br. 183,000 Br. 155,000 Total assets 1,160,000 870,000 Current liabilities 90,000 60,000 Long-term liabilities 400,000 290,000 Stockholders' equity 670,000 520,000 Net sales 2,300,000 1,740,000 Net income 150,000 102,000 Total assets and stockholders' equity at the beginning of 2009 were Br. 680,000 and Br. 420,000, respectively. Required i. Compute the following liquidity measures for 2009 and 2010: a. working capital and b. current ratio. Comment on the differences between the years. ii. Compute the following measures of profitability for 2009 and 2010: a. Net profit margin, b. Total asset turnover, c. Debt to equity ratio, and d. Return on equity. Comment on the change in performance from 2009 to

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access with AI-Powered Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Intermediate Accounting

Authors: Donald E. Kieso, Jerry J. Weygandt, Terry D. Warfield.

9th Canadian Edition, Volume 2

470964731, 978-0470964736, 978-0470161012

Students also viewed these Accounting questions