Carefully study the following Income Statement and Statement of Balance Sheet for Obaa Yaa & Daughters Co. Ltd. for the year 2013 and answer questions 84 through 91. You are required to show how you obtain your answer, please. REVENUE Sales Interest Rent Total Revenues EXPENSES Cost of goods sold Obaa Yaa & Daughters Co. Ltd. Income Statement For the Year Ended 31 December 2013 Selling General and administrative Interest Total expenses before income tax Income before extraordinary item and tax Income taxes on income before extraordinary items ($59,000 x 0.40) Income before extraordinary items Extraordinary loss Less tax savings ($9000 x 0.40) NET INCOME 14 S S 325,200 600 1,200 327,000 117,000 113,400 34,600 3,000 268,000 59,000 23,600 35,400 9,000 3,600 5,400 30,000 Obaa Yaa & Daughters Co. Ltd. Balance Sheet as at 31 December 2013 ASSETS S S Fixed Assets Land 8,000 Building 160,000 Accumulated depreciation, building (100,000) 60,000 Equipment 91,000 Accumulated depreciation, equipment (36,000) 55,000 Total fixed assets 123,000 Current Assets 67,300 Cash Accounts receivable 45,000 Allowance for doubtful accounts 2,200 42,800 Notes receivable 8,000 Interest receivable 100 Inventory 90,000 Prepaid expenses 400 Total current assets 208,600 Total assets 331,600 STOCKHOLDERS' EQUITY Contributed capital: Common stock: par 10%, 15,000 shares issued and outstanding Contributed capital in excess of par Retained earnings Total stockholders' equity LIABILITIES Current liabilities Accounts payable Interest payable Rent collected in advance Income tax payable Total current liabilities Long term liabilities Bonds payable, 6% Total liabilities TOTAL STOCKHOLDERS' EQUITY AND LIABILITIES 150,000 20,000 61,500 231,500 29,000 500 600 20,000 50,100 50,000 100,100 331,600 84. Calculate the current ratio. a. 6.56 b. 4.16 c. 3.49 d. 3.12 e. none of the above 85. Compute the quick ratio. a. 2.34 b. 2.36 c. 2.37 d. 2.38 e. none of the above 86. Compute the equity multiplier. a. 1.29 b. 1.54 c. 1.43 d. 1.75 total assets/total owners' equity e. None of the above 87. Determine the debt ratio. a. 0.20 b. 0.30 b. 0.40 total liability/total stockholders' equity and liabilities c. 0.15 d. none of the above 88. Compute the debt to equity ratio. a. 0.52 b. 0.32 c. 0.43 total liability/owners' equity d. 0.25 c. none of the above 89. Compute the return on equity. net income/total owners' equity a. 0.13 b. 0.15 c. 0.17 d. 0.19. e. none of the above 90. Compute the equity ratio. a. 0.40 b. 0.50 c. 0.60 d. 0.70 e. none of the above e. none of the above 90. Compute the equity ratio. a. 0.40 b. 0.50 c. 0.60 d. 0.70 e. none of the above 91. Calculate the earnings per share in S. a. 2.13 b. 1.19 c. 2.00 d. 1.54 e. none of the above 92. Given the following details, compute the Inventory turnover ratio. Net Sales Cost of Goods Sold Total Current Assets Average Inventory - $30,000 -$117,000 -$208,600 -$90,000 a. 3.00 b. 1.30. c. 1.78 d. 3.2 e. none of the above 17