Determine the followinn meacurec far anvo mounts which subsequent 1. Subtract current liabilities from current assets. 2. Divide current assets by current liabilities. 3. Divide quick assets by current liabilities. Quick assets are cash, temporary investments, and receivables. 4. Divide sales by average accounts receivable. Average Accounts receivable =( Beginning Net Accounts Receivable + Ending Net Accounts Receivable) 2. 5. Divide average accounts receivable by average daily sales. Average Accounts receivable =(B Binning Net Accounts Receivable + Ending Net Accounts Receivable 2. Average daily sales are sales divided by 365 days. 6. Divide cost of merchandise sold by average merchandise inventory. Average Inventory = (Beginning Inventories + Ending Inventories) 2. 7. Divide average inventory by average daily cost of merchandise sold. Average Inventory = (Beginning Inventories + Ending Inventories) 2. Average daily cost of merchandise sold is cost of merchandise sold divided by 365 days. 8. Divide property, plant, and equipment (net) by long-term liabilities. 9. Divide total liabilities by total stockholders' equity. 10. Divide the sum of income before income tax plus interest expense by interest expense, 11. Divide sales by average total assets. Average total assets = (Beginning total assets + Ending total assets) 2. 12. Divide the sum of net income plus interest expense by average total assets. Average total assets = (Beginning total assets + Ending total assets) 2. 13. Divide net income by average total stockholders' equity. Average total stockholders' equity =(Beginning total stockholders' equity + Ending total stockholders' equity) 2. 14. Divide net income minus preferred dividends from the retained eamings statement by average common stockholders' equity. Common stockholders' equity = Common stock + Retained earnings. Average common stockholders' equity = (Beginning common stockholders' equity + Ending common stockholders' equity ) 2. 15. Divide net income minus preferred dividends from the retained earnings statement by common shares outstanding (common stock par value). 16. Divide common market share price by common earnings per share (use answer from requirement 15), 17. Divide common dividends (from Retained Earnings Statement) by common shares outstanding (common stock \& par value), 18. Divide common dividends per share (use answer from requirement 17) by market share price. Measures of liquidity, Solvency, and Profitability The comparative financial statements of Stargel inc. are as follows. The market price of Stargel common stock was $119.70 on December 31,20Y2. Stargel Inc. Comparative Income Statement For the Years Ended December 31,20Y2 and 20Y1 Stargel Inc. Comparative Balance Sheet December 31, 20Y2 and 20Y1 Liabilities Current liabilities Long-term liabilities: $900,000$880,000 Mortgage note payable, 10% Bonds payable, 10% Total long-term liabilities Total liabilities Stockholders' Equity Preferred $0.90 stock, $10 par Common stock, $5 par Retained earnings Total stockholders' equity Total liabilities and stockholders' equity
