Erika Howell EH Share D Dic Styles d AaBbci AaBbcc AaB AaBb CcDAoBbceDd Agbad Find c Replace ... Heading 1 Heading 2 Title Subtitle Subtle Em... Emphasis Select Editing 4. The current ratio for Dana Dairy Products in 2013 was_ (See Table 3.2) A) 1.58 B) 0.63 C) 1.10 D) 0.91 va (See Table 3.2) 5. Since 2012, the liquidity of Dana Dairy Products A) has deteriorated B) has remained the same C) has improved D) is not determinable (See Table 3.2) 6. The inventory turnover for Dana Dairy Products in 2013 was_ A) 43 B) 5 C) 20 D) 25 (See Table 3.2) 7. The average collection period for Dana Dairy Products in 2013 was _ A) 32.5 days. B) 11.8 days. C) 25.3 days. D) 35.9 days. Chapter 4 Focus A re U U GUILLS SUICI U JUULU Table 3.2 Actual 2013 Dana Dairy Products Key Ratios Industry Actual Average 2012 Current ratio 1.3 1.0 Quick ratio 0.8 0.75 Average collection period 23 days 30 days Inventory turnover 21.7 19 Debt ratio 64.7% 50% Times interest earned 4.8 5.5 Gross profit margin 13 6% 12.0% Net profit margin Retum on total assets 2.9% Return on equity 8.2% 4.0% 0% 0.5% 2.0% Income Statement Dana Dairy Products For the Year Ended December 31, 2013 Sales revenue $100,000 Less: Cost of goods sold 87,000 Gross profits $ 13,000 Less: Operating expenses 11,000 Operating profits $ 2,000 Less: Interest expense 500 Net profits before taxes $ 1,500 Less: Taxes (40%) Net profits after taxes 600 a ices Mailings Review View Help uses. Unless you need to edit, it's safer to stay in Protec ted View Enable Editing Balance Sheet Dana Dairy Products December 31, 2013 Assets Cash Accounts receivable Inventories Total current assets Gross fixed assets Less: Accumulated depreciation Net fixed assets Total assets $1,000 8.900 4,350 $14,250 $35,000 13.250 21,750 $36,000 Liabilities & Stockholders' Equity Accounts payable Accruals Total current liabilities Long-term debt Total liabilities Common stock Retained earings Total stockholders' equity Total liabilities & stockholders equity $ 9,000 6,675 $15,675 4.125 $19,800 1,000 15,200 $16,200 $36,000 0 H = 6 6 4 5 e e c