Accounts payable

424

374

Accounts receivable

1,268

820

Accumulated depreciation

6,734

6,622

Cash & equivalents

212

118

Common stock

1,172

1,110

Cost of goods sold

1,500

n.a.

Depreciation expense

?

n.a.

Common stock dividends paid

?

n.a.

Interest expense

140

n.a.

Inventory

1,002

1,016

Addition to retained earnings

602

n.a.

Long-term debt

800

726

Notes payable

230

380

Gross plant & equipment

10,260

10,000

Retained earnings

3,050

2,466

Sales

3,018

n.a.

Other current liabilities

116

96

Tax rate

34

%

n.a.

Market price per share year end

$

19.80

$

17.50

Number of shares outstanding

500

million

500

million

Interest coverage ratio (Assume that year 1 EBIT was 1,297 and year 1 interest expense was 120.)

Year 2 interest coverage ratio
Year 1 interest coverage ratio

b. Average collection period (Assume that the accounts receivable balance was 950 on December 31 of the previous year and that year 1 sales were 2,700.)

Year 2 ACP	days
Year 1 ACP	days

c. Current ratio

Year 2 current ratio
Year 1 current ratio

d. Quick ratio

Year 2 quick ratio
Year 1 quick ratio