Question
Financial data for the Power Co. as of December 31, 2017: Inventory $300,000 Long-term debt 500,000 Interest expense 25,000 Accumulated depreciation 450,000 Cash 280,000 Net
Financial data for the Power Co. as of December 31, 2017:
Inventory | $300,000 |
Long-term debt | 500,000 |
Interest expense | 25,000 |
Accumulated depreciation | 450,000 |
Cash | 280,000 |
Net sales (all credit) | 1,800,000 |
Common stock | 900,000 |
Accounts receivable | 325,000 |
Operating expense (incl. depr. exp. and taxes) | 625,000 |
Notes payable-current | 200,000 |
Cost of goods sold | 1,100,000 |
Plant and equipment | 1,400,000 |
Accounts payable | 180,000 |
Marketable securities | 80,000 |
Accrued wages | 45,000 |
Retained earnings | 110,000 |
1)
From the information presented in Table 4-6, calculate the following ratios for the Power Co.
i. current ratio
ii. acid test ratio
iii. average collection period
iv. inventory turnover
v. gross profit margin
vi. operating profit margin
vii. net profit margin
viii. total asset turnover
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