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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)

  1. Current Ratio
  2. Debt Ratio
  3. Fixed asset turnover
  4. Total asset turnover
  5. 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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