Question
C) Use information in the below table to compute the following ratios for 2002. a: Current ratio b: Quick ratio c: Account Receivable turnover d:
C) Use information in the below table to compute the following ratios for 2002.
| a: Current ratio | b: Quick ratio | c: Account Receivable turnover |
| d: Debt to Equity | e: Return on equity | f: Gross Profit margin |
| g: Earnings per share | h: Market Price per Share |
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| In Dollars | 2002 | 2001 |
| Sales | 800,000 | 600,000 |
| Cost of goods sold | 600,000 | 500,000 |
| Net income | 90,000 | 75,000 |
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| Cash | 75,000 | 55,000 |
| Account Receivable | 87,000 | 81,000 |
| Inventories | 65,000 | 75,000 |
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| Fixed Assets | 20,000 | 18,000 |
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| Current Liabilities | 54,810 | 51,000 |
| Long term Liabilities | 50,000 | 25,000 |
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| Shareholders Equity | 179,690 | 120,000 |
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| Preferred dividends | 0 | 0 |
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| Shares of common stocks | 150,000 | 150,000 |
| Price-Earnings ratio (P/E) | 3.0 | 2.8 |
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