Question
Bavarian Sausage, Inc. posted the following balance sheet and income statement: Balance Sheet Cash $ 50,000 Accounts Payable $185,000 Accounts Receivable 125,000 Notes Payable 125,000
Bavarian Sausage, Inc. posted the following balance sheet and income statement:
Balance Sheet | ||||
Cash | $ 50,000 |
| Accounts Payable | $185,000 |
Accounts Receivable | 125,000 |
| Notes Payable | 125,000 |
Inventories | 225,000 |
| Long-term debt | 115,000 |
Net Plant and Equipment |
525,000 |
|
Common Stock |
350,000 |
|
|
| Retained earnings | 150,000 |
Total Assets |
$925,000 |
| Total liabilities and Stockholders Equity |
$925,000 |
Income Statement | ||
Sales |
| $525,000 |
Cost of goods sold |
| 215,000 |
Depreciation |
| 65,000 |
|
|
|
Earnings before interest and taxes |
|
245,000 |
Interest expense | 35,000 |
|
|
|
|
Net profit before taxes |
|
210,000 |
Taxes (@ 40%) |
| 84,000 |
|
|
|
Net income |
| $126,000 |
What is Bavarian Sausage, Inc.s quick ratio? (Show your work. Four decimal places required. Highlight or bold your answer.) What is Bavarian Sausage, Inc.s net profit margin? (Show your work. Label %. No decimal places required. Highlight or bold your answer.) What is Bavarian Sausage, Inc.s debt-equity ratio? (Show your work. Two decimal places required. Highlight or bold your answer.) Calculate Bavarian Sausage, Inc.s return on assets. (Show your work. Label %. Two decimal places required. Highlight or bold your answer.) Calculate Bavarian Sausage, Inc.s inventory turnover. (Show your work. Two decimal places required. Highlight or bold your answer.) Calculate Bavarian Sausage, Inc.s return on equity. (Show your work. Label %. Two decimal places required. Highlight or bold your answer.)
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