Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

(Computing ratios) Use the information from the balance sheet and income statement in the popup window, to calculate the following ratios: a. Current ratio b.

image text in transcribed
image text in transcribed
image text in transcribed
(Computing ratios) Use the information from the balance sheet and income statement in the popup window, to calculate the following ratios: a. Current ratio b. Acid-test ratio c. Times interest earned d. Inventory turnover e. Total asset turnover f. Operating profit margin g. Days in receivables h. Operating return on assets 1. Debt ratio J. Fixed asset turnover k. Return on equity a. The current ratio is X. (Round to two decimal places.) b. The acid-test ratio is X. (Round to two decimal places.) c. The times interest earned is X. (Round to two decimal places.) d. The inventory turnover is 1x. (Round to two decimal places.) e. The total asset turnover X (Round to two decimal places.) 1. The operating profit margin is % (Round to one decimal place.) 9. The days in receivables are days. (Round to two decimal places.) h. The operating return on assets is % (Round to one decimal place.) i. The debt ratio is %. (Round to one decimal place.) J. The fixed asset turnover is X. (Round to two decimal places.) k. The return on equity is %. (Round to one decimal place.) * Data Table the follo Balance Sheet ASSETS Cash Accounts receivable Inventory 100,000 30,000 50,000 10,000 Prepaid expenses Total current assets Gross plant and equipment Accumulated depreciation $ 190,000 401,000 (66,000) $ 525,000 med er is Total assets LIABILITIES AND OWNERS' EQUITY Accounts payable ver 90,000 63,000 margid Accrued liabilities Total current liabilities Long-term debt $ bles a on a Common stock Retained earnings 153,000 120,000 205,000 47,000 525,000 Total liabilities and equity $ over is Income Statement Accounts payable ned 90,000 63,000 er argin Accrued liabilities Total current liabilities Long-term debt Common stock es on ass 153,000 120,000 205,000 47,000 525,000 ver Retained earnings $ Total liabilities and equity Income Statement Sales $ st earned 210,000 (90,000) mover is Cost of goods sold Gross profit Selling, general, and administrative expenses $ turnover 120,000 (29,000) (26,000) rofit margi ceivables a Depreciation expenses Operating income Interest expense Earnings before taxes Taxes return on a $ 65,000 (8,000) 57,000 (16,000) 41,000 Earnings available to common shareholders $ It turnover is * 12% of sales are cash sales. equity is

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

Controlling White Collar Crime Designing And Auditing For Systems Security

Authors: John Millar Carroll

1st Edition

0409950653, 978-0409950656

More Books

Students also viewed these Accounting questions