Question
Compute the ratios: Total asset turnover ratio Fixed asset turnover ratio Accounts receivable turnover ratio Inventory turnover ratio Times interest earned ratio Dividend yield ratio
Compute the ratios:
Total asset turnover ratio
Fixed asset turnover ratio
Accounts receivable turnover ratio
Inventory turnover ratio
Times interest earned ratio
Dividend yield ratio
| 2015 | 2014 |
Income Statement |
|
|
Sales revenue | 190,000 | 167,000 |
Cost of goods sold | 112,000 | 100,000 |
Gross profit | 78,000 | 67,000 |
Operating expenses and interest expenses | 56,000 | 53,000 |
Pretax income | 22,000 | 14,000 |
Income tax | 8,000 | 4,000 |
Net income | 14,000 | 10,000 |
|
|
|
|
|
|
Balance Sheet |
|
|
Cash | 4,000 | 7,000 |
Accounts receivable (net) | 14,000 | 18,000 |
Inventory | 40,000 | 34,000 |
Operational assets (net) | 45,000 | 38,000 |
Total assets | 103,000 | 97,000 |
|
|
|
Current liabilities (no interest) | 16,000 | 17,000 |
Long-term liabilities (10% interest) | 45,000 | 45,000 |
Common stock (par $5) | 30,000 | 30,000 |
Retained earnings | 12,000 | 5,000 |
Total Liabilities and Stockholders Equity | 103,000 | 97,000 |
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started