a) Current ratio = Current assets/Current liabilities (3pts)

b) Quick ratio = Cash + Marketable securities + Accounts receivable)/Current liabilities (3pts)

c) Average Payment Period ratio = Accounts payable/Cost of goods sold/365 = Accounts payable/Cost of goods sold per day (4pts)

d) Total assets turnover ratio = Net sales/Total assets (3pts)

e) Fixed assets Turnover ratio = Net sales/Net fixed assets (3pts)

f) Inventory Turnover ratio = Cost of goods sold/Inventory (3pts)

g) Total debt to total asset ratio = Total debt/Total assets (3pts)

h) Equity multiplier = Total assets/Total equity (3pts)

i) Interest coverage ratio = Earnings before interest & taxes (operating income or EBIT)/Interest expense = (4pts)

j) Operating profit margin ratio = Earnings before interest & taxes(operating income)/Net sales (3pts)

k) Net profit margin ratio = Net income/Net sales (3pts)

l) Operating return on assets ratio = Earnings before interest & taxes (operating income)/Total assets (3pts)

m) Return on total assets ratio = Net income/total assets (3pts)

n) Return on Equity ratio = Net income/common equity (returned earning + Stockholder's equity)(3pts)

36 minutes remaining 1 OF 20 QUESTIONS REMAINING Income taxes (40%) $24,000 Net income $36,000 Number of shares outstanding $50,000 Earnings per share (EPS) $0.72 Use the table above to solve for the following: a) Current ratio = Current assets/Current liabilities (3pts) b) Quick ratio = Cash + Marketable securities + Accounts receivable)/Current liabilities (3pts) c) Average Payment Period ratio = Accounts payable/Cost of goods sold/365 = Accounts payable/Cost of goods sold per day (4pts) d) Total assets turnover ratio = Net sales/Total assets (3pts)37 minutes remaining 1 OF 20 QUESTIONS REMAINING X Balance Sheet December 31st, 2021 2021 Assets Cash and marketable securities $25,000 Accounts receivable $100,000 Inventories $125,000 Total Current assets $250,000 Gross plant & equipment $300,000 Less: Accumulated depreciation $-100,000 Net plant & equipment $200,000 Land $50,000 Net fixed assets $250,000 Total assets $500,000 Last saved 8: Questions Filter (20) Save an1 OF 20 QUESTIONS REMAINING Income Statement December 31st, 2021 2021 Net revenue sales $700,000 Cost of Goods Sold $450,000 Gross profit $250,000 Operating expenses General & administrative $95,000 Selling & marketing $56,000 Depreciation $25,000 Operating income $74,000 Interest $14,000 Income before taxes $60,000 Last saved 8:44 Save and Questions Filter (20)LIABILITIES & EQUITY Accounts payable $78,000 Notes payable $34,000 Accrued liabilities $30,000 Total current liabilities $142,000 Long term debt $140,000 Total liabilities $282,000 Common stock ($1 par, 50,000 shares) $50,000 Paid in capital 100,000 Retained earnings $68,000 Total stockholders' equity $218,000 Total liabilities and equity $500,000 Last save Sa Questions Filter (20)