#35-42

Use the following to answer questions 35.21 The following information represent both average and the antorination pertains to Sabo Company. Assume that all balance sheet amounts average and ending balange figures. Assume that all sales were on credit. Cash and short-term investments Accounts receivable (net) Assets Inventory Property, plant and equipment Total Assets $40,000 25.000 20.000 $210.000 5295.000 Liabilities and Stockholders' Equity Current liabilities Long-term liabilities Stockholders' equity common Total Liabilities and Stockholders' Equity $60,000 585,000 150.000 $295.00 Pg. 11 Income Statement Sales Cost of goods sold Gross margin Operating expenses Net income 585,000 45,000 40,000 20.00 $20.000 Number of shares of common stock Market price of common stock Dividends per share 6,000 S20 -90 35. What is the current ratio for this company? A) 1.42 B) 80 C) 1.16 D) 60 36. What is the receivable tumover for this company? A) 2.8 times B) 2 times C) 3.4 times D) 3times 37. What is the inventory turnover for this company? A) 2 times B) 2.25 times C) 1 time D) .44 times 38. What is the retum on assets for this company? A) 6.8% B) 10.5% C) 11.7% D) 26.7% 39. What is the profit margin for this company? A) 42.86% B) 18.75% C) 23.5% D) 15.0% Pg. 12 41. What is the return on common stockholders' equity for this company? A) 13.3% B) 5% C) 23.3% D) 53.3% 42. What is the price-eamings ratio for this company? A) 6 times B) 2.5 times C) 8 times D) 4 times Use the following to answer questions 43-46