Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Below are numbers from a balance sheet and income statement. Construct the financial ratios requested below. Sales 483002 Operating Costs 351501 Depreciation Expense 10000

image text in transcribedimage text in transcribed

Below are numbers from a balance sheet and income statement. Construct the financial ratios requested below. Sales 483002 Operating Costs 351501 Depreciation Expense 10000 Interest Expense 5000 Tax Expense 29408 Cash 1773 Receivables 38866 Inventories 57450 Fixed Assets, Net 50000 Payables 11000 Accrued Expenses 10000 Long-Term Loan 50000 Common Equity 77089 Assignment: Prepare an income statement and a balance sheet for this company using the information provided. Calculate: 1. Current ratio 2. Quick ratio 3. Return on equity 4. NWC-to-total-Assets (Working capital to assets) 5. Ratio of total debt and liabilities to total assets 6. Ratio of total debt and liabilities to shareholder's equity 7. Interest coverage 8. Net profit (As $) 9. Sales to total assets (Asset turnover) 10. Return on assets 11. Equity multiplier

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Financial Management Theory And Practice

Authors: Eugene Brigham, Michael Ehrhardt, Jerome Gessaroli, Richard Nason

3rd Canadian Edition

017658305X, 978-0176583057

More Books

Students also viewed these Accounting questions

Question

krralers onal is as profures 170 Poks per touk

Answered: 1 week ago

Question

9-1 Describe the performance appraisal process.

Answered: 1 week ago

Question

9-4 List steps to take in the appraisal interview.

Answered: 1 week ago