Question
Calculate the following ratios from the Balance Sheet and the Income Statement of Saudi Manufacturing Corporation given below: (Ch 4) Current Ratio Debt Ratio Fixed
Calculate the following ratios from the Balance Sheet and the Income Statement of Saudi Manufacturing Corporation given below: (Ch 4)
- Current Ratio
- Debt Ratio
- Fixed asset turnover
- Total asset turnover
- Operating profit margin
Balance Sheet: | ||
Cash | 30,000 | |
Acct/Rec | 72,500 | |
Inventories | 50,000 | |
Current assets | 152,500 | |
Net fixed assets | 240,000 | |
Total assets | 392,500 | |
Accts/Pay | 44,500 | |
Accrued expenses | 31,000 | |
Short-term N/P | 9,500 | |
Current liabilities | 85,000 | |
Long-term debt | 110,000 | |
Owner's equity | 197,500 | |
Total liabilities and owners equity | 392,500 | |
Income Statement: | ||
Net sales | 450,000 | |
COGS | 220,000 | |
Gross profit | 230,000 | |
Operating expenses | 128,000 | |
Net operating income | 102,000 | |
Interest expense | 18,500 | |
EBT | 83,500 | |
Income taxes | 33,000 | |
Net income | 50,500 |
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