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8:3 help in g, h, i, j, and k (Computing ratos) Use the information from the balance sheet and income statement in the popup window,
8:3
(Computing ratos) Use the information from the balance sheet and income statement in the popup window, to calculate the following ration: a. Current ratio b. Acid-test ratio c. Times interest earned d. Inventory turnover Total asset tumover 1. Operating profit margin 9. Days in receivables h. Operating return on assets Debt ratio 1. Return on equity k. Fixed asset turnover Balance Sheet ASSETS Cash $ 98,000 Accounts receivable Inventory 38,000 40,000 10,000 Prepaid expenses Total current assets $ Gross plant and equipment 186,000 399,000 (67,000) Accumulated depreciation Total assets $ 518,000 LIABILITIES AND OWNERS' EQUITY Accounts payable $ 90,000 62,000 Accrued liabilities Total current liabilities Long-term debt 152,000 120,000 Common stock 208,000 Data Table Common stock Retained earnings 208,000 38,000 Total liabilities and equity $ 518,000 Income Statement Sales $ 217,000 (86,000) $ Cost of goods sold Gross profit Selling, general, and administrative expenses Depreciation expenses Operating profits 131,000 (30,000) (30,000) $ Interest expense 71,000 (5,000) Earnings before taxes Taxes 66,000 (13,860) Net income 52,140 12% of sales are cash sales. a. The current ratio is 1.22 X. (Round to two decimal places.) b. The acid-test ratio is .89 X. (Round to two decimal places.) c. The times interest earned is 14.2 X. (Round to two decimal places.) d. The inventory turnover is 2.15 X. (Round to two decimal places.) e. The total asset turnover .42 X. (Round to two decimal places.) f. The operating profit margin is 32.72 %. (Round to one decimal place.) g. The days in receivables are days. (Round to two decimal places.) help in g, h, i, j, and k
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