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A little help with the ratios please Summer Corporation has just completed its comparative statements for the year ended December 31, year 5 At this

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A little help with the ratios please

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Summer Corporation has just completed its comparative statements for the year ended December 31, year 5 At this point, certain analytical and interpretive procedures are to be undertaken. The completed statements (summarized) are as follows: Year 5 Year 4 Statement of Earnings Sales revenue Cost of sales Gross margin operating expenses (including interest on bonds) Pretax earnings Income tax expense Net earnings Statement of Financial Position Cash Accounts receivable (net) Merchandise inventory Prepayments Property, plant, and equipment (net) $960,000a 540,000 420,000 342,000 78,000 24,000 $ 54,000 $840,000a 460,000 380,000 336,000 44,000 12,000 $ 32,000 $ 13,600 84,000 50,000 400 260,000 $408,000 $ 34,000 2,000 140,000b 200,0000 $ 7,800 56,000 40,000 200 240,000 $344,000 $ 36,000 4,000 100,000 200,000 Accounts payable Income taxes payable Bonds payable (53 interest rate) Connon shares (40,000 shares) % % % Name and Computation of the 2018 Ratio Profitability ratios: Return on equity Return on assets Financial leverage percentage Earnings per share Profit margin Fixed asset turnover Liquidity ratios Cash ratio Current ratio Quick ratio per share % Summer Corporation has just completed its comparative statements for the year ended December 31, year 5 At this point, certain analytical and interpretive procedures are to be undertaken. The completed statements (summarized) are as follows: Year 5 Year 4 Statement of Earnings Sales revenue Cost of sales Gross margin Operating expenses (including interest on bonds) Pretax earnings Income tax expense Net earnings Statement of Financial Position Cash Accounts receivable (net) Merchandise inventory Prepayments Property, plant, and equipment (net) $960,000a 540,000 420,000 342,000 78,000 24,000 $ 54,000 $840,000a 460,000 380,000 336,000 44,000 12,000 $ 32,000 $ 13, 600 84,000 50,000 400 260,000 $408,000 $ 7,800 56,000 40,000 200 240,000 $344,000 Statement of Financial Position Cash Accounts receivable (net) Merchandise inventory Prepayments Property, plant, and equipment (net) Accounts payable Income taxes payable Bonds payable (5% interest rate) Common shares (40,000 shares) Retained earnings $ 13, 600 84,000 50,000 400 260,000 $408,000 $ 34,000 2,000 140,000b 200,0000 32,000d $408,000 $ 7,800 56,000 40,000 200 240,000 $344,000 $ 36,000 4,000 100,000 200,000 4,000 $344,000 aCredit sales totalled 40 percent of total sales. b$40,000 of bonds were issued on January 2, year 5. The market price of the stock at the end of year 5 was $18 per share. dDuring year 5, the company declared and paid a cash dividend of $26,000. % % % Name and Computation of the 2018 Ratio Profitability ratios. Return on equity Return on assets Financial leverage percentage Earnings per share Profit margin Fixed asset turnover Liquidity ratios: Cash ratio per share % Current ratio Quick ratio

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