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3) Use the following information from the current year financial statements of a company to calculate the ratios below (a) Current ratio (b) Accounts receivable

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3) Use the following information from the current year financial statements of a company to calculate the ratios below (a) Current ratio (b) Accounts receivable turnover. (Assume the prior years accounts receivable balance was $100.000) (c) Days' sales uncollecterd (d) Inventory turnover. (Assume the prior year's inventory was 850.200) (e) Times interest earned ratio () Return on common stockholders' equity. (Assume the prior and the retained eamings balance was $128,000.) years common stock balance was $480,000 (O) Eamings per share (assuming the corporabon has a silure, with only common stock outstanding) (h) Price earnings ratio. (Assume the company's stock is selling for $26 per share.) (0 Divided yield ratio. (Assume that the company paid $1.25 per share in cash dividends) Income statement data: Sales (all on credit) Cost Gross profit on sales Operating expensers Operating income $1,075,000 575,000 $500,000 of goods sold $195,000 Interest expense 20,400 Income before taxes $174 74,000 Net income Balance sheet data Cash Accounts receivable nventory Prepaid Expenses $38,400 120,000 56,700 24,000 $239,100 708,900 Total current assets Total plant assets Total assets $91,200 4,800 204,000 $300,000 480,000 168,000 erest payable Long-term liabilities Common stock, $10 par etained earnings Total liabilities and equity

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