Exercise 13-6 Selected Financial Ratios [LO3, LO4]

Recent financial statements for Madison Company follow:

Madison Company Balance Sheet June 30
Assets
Current assets:
Cash				$	20,000
Accounts receivable, net					170,000
Merchandise inventory					380,000
Prepaid expenses					7,000
Total current assets					577,000
Plant and equipment, net					850,000
Total assets				$	1,427,000
Liabilities and Stockholders' Equity
Liabilities:
Current liabilities				$	290,000
Bonds payable, 9%					360,000
Total liabilities					650,000
Stockholders