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4. As per income statement dated December 31, 2007, Company A's revenue is a. $800,000 and net income is $50,000 with 4.5% tax rate

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4. As per income statement dated December 31, 2007, Company A's revenue is a. $800,000 and net income is $50,000 with 4.5% tax rate and 2.5% interest rate on long-term liabilities. Find the following ratios (Company-A's balance sheet as Table 1) Debt ratio b. Current ratio c. Quick ratio d. Inventory turnover ratio e. Days sales outstanding f. Total asset turnover g. Net margin ratio h. Return on equity i. Earnings per share (Hint: consider common stock and net income of $50,000) j. Book value per share COMPANY A Balance sheet December 31, 2007 ASSETS DOLLAR AMOUNT Current assets Cash 12,100 Petty Cash 100 Temporary Investments 50,000 Accounts Receivable - Net 40,500 Inventory 30,000 Supplies 3,800 Prepaid Insurance 1,500 Fixed assets Investments 36,000 Land 5,500 Land Improvements 6,500 Buildings 180,000 Equipment 201,000 Other assets Goodwill 105,000 Trade Names 210,000

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