3. Use the information of Rayan Boot company to calculate the follwoings

Requirements is given in below Table

-profit margin

-ROA

- ROE

-recivables turnover

-total assets turover

-quick ratio

-current ratio

RYAN BOOT COMPANY Balance Sheet December 31, 2010 Assets Liabilities and Stockholders' Equity Cash $ 50,000 Accounts payable ............ $2,200,000 Marketable securities 80,000 Accrued expenses 150,000 Accounts receivable 3,000,000 Notes payable (current) 400,000 Inventory ........... 1,000,000 Bonds (10%) ..... 2,500,000 Gross plant and equipment Common stock (1.7 million Less: 6,000,000 shares, par value $1) ....... 1,700,000 Accumulated depreciation .... 2,000,000 Retained earnings 1,180,000 Total liabilities and Total assets. $8,130,000 stockholders' equity $8,130,000 Income Statement-2010 Sales (credit) $7,000,000 Fixed costs 2,100,000 Variable costs (0.60) 4,200,000 Earnings before interest and taxes 700,000 Less: Interest 250,000 Earnings before taxes 450,000 Less: Taxes @ 35% 157,500 Earnings after taxes $ 292,500 Dividends (40% payout) 117,000 Increased retained earnings $ 175,500 *Fixed costs include (a) lease expense of $200,000 and (b) depreciation of $500,000. Note: Ryan Boots also has $65,000 per year in sinking fund obligations associated with its bond issue. The sinking fund represents an annual repayment of the principal amount of the bond. It is not tax-deductible