Question
A company shows the following selected financial information from activities for the current year. Gross sales $225,000 Current assets $40,000 Long-term assets $100,000 Accounts Payable
A company shows the following selected financial information from activities for the current year.
Gross sales $225,000
Current assets $40,000
Long-term assets $100,000
Accounts Payable $16,000
5 Year Note Payable $44,000
Net Income $7,200
Outstanding shares 5,000
Par value of shares $9 per share
Retained Earnings $35,000 (includes current net income)
Calculate the following from the above information provided:
Current ratio
Debt-to-equity ratio is
Return on Owners equity
Earnings per share
Knowing that:
Debt to Equity = Total Liabilities/ Total Equity
Return on Equity = Net Income / Shareholder Equity
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