Question
Following is the balance sheet of Munoz Company for Year 3: MUNOZ COMPANY Balance sheet Assets Cash $ 15,200 Marketable securities 7,580 Accounts receivable 13,400
Following is the balance sheet of Munoz Company for Year 3:
| MUNOZ COMPANY Balance sheet | |||
| Assets | |||
| Cash | $ | 15,200 | |
| Marketable securities | 7,580 | ||
| Accounts receivable | 13,400 | ||
| Inventory | 11,200 | ||
| Property and equipment | 169,500 | ||
| Accumulated depreciation | (12,200 | ) | |
| Total assets | $ | 204,680 | |
| Liabilities and Stockholders Equity | |||
| Accounts payable | $ | 8,690 | |
| Current notes payable | 3,320 | ||
| Mortgage payable | 4,550 | ||
| Bonds payable | 21,240 | ||
| Common stock | 114,400 | ||
| Retained earnings | 52,480 | ||
| Total liabilities and stockholders equity | $ | 204,680 | |
The average number of common stock shares outstanding during Year 3 was 860 shares. Net income for the year was $15,000. Required Compute each of the following: (Round your answer to 2 decimal places. For percentages, 0.2345 should be entered as 23.45.)
| a | current ratio | _____________ | |
| b | earnings per share | _____________ | per share |
| c | quick (acid- test) ratio | _____________ | |
| d | Return on investment | _____________ | % |
| e | return on equity | _____________ | % |
| f | debt to equity ratio | _____________ | |
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Fundamental Managerial Accounting Concepts
Authors: Thomas Edmonds, Christopher Edmonds, Bor Yi Tsay, Philip Olds
8th edition
978-1259569197
