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Current ratio. Acid-Test Ratio Accounts Receivable turnover (Assume the prior years AR was $100,000.) Inventory turnover. (Assume the prior year's inventory was $50,200.) Times interest

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  1. Current ratio.

  1. Acid-Test Ratio

  1. Accounts Receivable turnover (Assume the prior years AR was $100,000.)

  1. Inventory turnover. (Assume the prior year's inventory was $50,200.)

  1. Times interest earned ratio.

  1. Return on common stockholders' equity. (Assume the prior year's common stock balance was $480,000 and the retained earnings balance was $128,000.)

  1. Earnings per share (assuming the corporation has a simple capital structure, with only common stock outstanding).

  1. Price earnings ratio. (Assume the company's stock is selling for $26 per share.)

  1. Divided yield ratio. (Assume that the company paid $1.25 per share in cash dividends.)
Use the following information from the current year financial statements of a company to calculate the ratios on the following page: Balance sheet dat 56700 Accounts receivable Inventory Frepaid Expenses Total current assets Tolal plant assets Total sect Accounts payable Interest payable Long-tern abilities Tolal liabilities Common stock, Stor Relained earnings Total liabilities and county $239.100 108.000 $18.00 $ 91,200 4 800 204.000 180).X20 168.00 S 18 000 Income statement data: Sales (all on credit) Cost of goods sold Gross profit on sales Operating expenses Operating income Interest expense. Income before taxes Income taxes Nel income $1.075.000 575.000 $ 500.000 305.000 $ 195,000 20.400 $ 174.600 74.000 $ 100.000

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