Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Calculate the following ratios based on the financial statements on the next page: Current ratio Gross profit margin Operating profit margin Net profit margin Times

Calculate the following ratios based on the financial statements on the next page:

Current ratio

Gross profit margin

Operating profit margin

Net profit margin

Times interest earned

Return on stockholders equity

Return on assets

Debt-to-equity ratio

Inventory turnover ratio

image text in transcribed

image text in transcribed

image text in transcribed

Income Statement ($ millions) Revenues Cost of Goods Sold Gross Profit Operating Expense Earnings Before Interest & Taxes Interest Expense Earnings Before Taxes Income Tax Expense Net Income $ 57 Statement of Retained Earnings ($ millions) Beginning Retained Earnings Net Income Dividends Ending Retained Earnings 25 Balance Sheet ($ millions) Cash $ Receivables Inventory Current Assets Property, Plant & Equipment Total Assets 40 $ 100 300 400 $ 10 120 $ 130 Current Liabilities $ Long-Term Liabilitie: Total Liabilities Common Stock@Par Retained Earnings Common Equity Total Liabilities & Common Equity 210 60 270 $ 400 Question #6 Calculate the following ratios based on the financial statements on the next page: Current ratio Gross profit margin Operating profit margin Net profit margin Times interest earned Return on stockholders' equity Return on assets Debt-to-equity ratio Inventory turnover ratio

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

Modern Internal Auditing Continuing Professional Education CPE Edition

Authors: Robert M. Atkisson, Victor Z. Brink, Herbert N. Witt

1st Edition

0471818828, 978-0471818823

More Books

Students also viewed these Accounting questions