Question
Below are numbers from a balance sheet and income statement. Construct the financial ratios requested below. Sales 431646 Operating Costs 318988 Depreciation Expense 10000 Interest
Below are numbers from a balance sheet and income statement. Construct the financial ratios requested below.
Sales 431646
Operating Costs 318988
Depreciation Expense 10000
Interest Expense 5000
Tax Expense 29408
Cash 1000
Receivables 30000
inventories 53164
Fixed Assets, Net 50000
Payables 11000
Accrued Expenses 10000
Long-Term Loan 50000
Common Equity 63164
Prepare an income statement and a balance sheet for this company using the information provided.
Calculate: 1. Return on equity
2. Current ratio
3. Quick ratio
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 shareholders equity
7. Interest coverage
8. Net profit margin
9. Sales to total assets (Asset turnover)
10. Return on assets
11. Equity multiplier
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