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8. Calculate the following financial measures for NCM, Inc. Show all calculations! Place your answers in the right hand column. a. Working Capital b. Current
8. Calculate the following financial measures for NCM, Inc. Show all calculations! Place your answers in the right hand column. a. Working Capital b. Current Ratio c. Account Receivable Turnover d. Days Sales in Receivables e. Inventory Turnover f. Days Sales in Inventory g. Times Interest Earned h. Net Sales to Assets i Return on Total Assets j. Return on Stockholder Equity NCM Inc. BALANCE SHEET ASSETS 20x2 20x1 Current Assets Cash Accounts Receivable Marketable Securities Prepaid Expenses Inventory $110,000 30,000 10,000 25,000 75.000 250,000 $90.000 20,000 15,000 30,000 60.000 215.000 Property and Equipment Land Buildings Equipment Less Accumulated Depreciation 50,000 120.000 92,000 -182,000) 180,000 50,000 120,000 86,000 (76,000) 180.000 Total Assets 430.000 395.000 LIABILITIES AND EQUITY Current Liabilities Accounts Payable Accrued Expenses 22,000 34,000 56,000 40,000 15.000 55,000 Long-term Debt 120.000 170,000 Total Liabilities 176.000 225,000 Common Stock Paid-in Capital Retained Earnings 130.000 15,000 109 000 120,000 50.000 254.000 170,000 Total Stockholder Equity Total Liabilities and Equity 430.000 395.000 NCM Inc. INCOME STATEMENT 20x2 Sales $ 500,000 Cost of Goods Sold 200,000 Gross Profit 300,000 Operating Expenses Interest Expense Depreciation Expense 200,000 11,000 6.000 217.000 Income from Operations Other Income 83,000 7,000 90,000 Net Income Income Tax Expense 28.000 Net Income $ 62.000 Other Information: a. Other Income is a gain from the sale of securities which cost $5,000 and which were sold for $12,000. b. Dividends in the amount of $3,000 were paid during the year. c. The company issued additional stock for $25,000 during the year
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