Current assets: Cash SNIDER CORPORATION Balance Sheet December 31, 20X1 Marketable securities Accounts receivable (net) Assets $52,200 24,400 2,22,000 Inventory 2,38,000 Total current assets $5,36,600 Investments 65,900 Plant and equipment $6,15,000 Less: Accumulated depreciation (2,71,000) Net plant and equipment $3,44,000 Total assets $9,46,500 Liabilities and Stockholders' Equity Current liabilities: Accounts payable $93,400 Notes payable 70,600 Accrued taxes Total current liabilities Long-term liabilities: Bonds payable 17,000 $1,81,000 1,53,200 Total liabilities $3,34,200 Stockholders' equity: Preferred stock, $50 par value $1,00,000 Common stock, $1 par value 80,000 Capital paid in excess of par Retained earnings 1,90,000 2,42,300 Total stockholders' equity Total liabilities and stockholders' equity $6,12,300 $9,46,500 SNIDER CORPORATION Income Statement For the Year Ending December 31, 20X1 Sales (on credit) $20,64,000 Less: Cost of goods sold 13,13,000 Gross profit $7,51,000 Less: Selling and administrative expenses 4,96,000* Operating profit (EBIT) $2,55,000 Less: Interest expense 26,900 Earnings before taxes (EBT) Less: Taxes $2,28,100 83,300 Earnings after taxes (EAT) $1,44,800 *Includes $36,100 in lease payments. Problem 3-36 Instructions Enter formulas to calculate the following ratios. Use a 360 day year. Profitability ratios Profit margin FORMULA Return on assets (investment) FORMULA Return on equity FORMULA Assets utilization ratios Receivable turnover FORMULA Average collection period FORMULA Inventory turnover FORMULA Fixed asset turnover FORMULA Solution Total asset turnover FORMULA Liquidity ratios Current ratio FORMULA Quick ratio FORMULA Debt utilization ratios Debt to total assets FORMULA Times interest earned FORMULA Fixed charge coverage FORMULA