from Question 8-18 Thank you

-Test (Quick Ratio d. Selling Expenses Horizontal comment one or two sentences) about the collective information provided by the ratios e. Selling Expenses - for curr Receivable Turnover your ollection Perk 8. Inventory Turnover rent (one or Duld you by 9. Average Sales Period (Days Sales in Inventory) 10. Briefly comment (one or two sentences) about the information in B 89. If the industry average for # 8 is 3, would you be concerned? Why or why not? 11. Times Interest Earned 12. Simply explain the purpose of the Times Interest Earned Calculation 13. Gross Margin 14. Return on Assets 15. Return on Equity 16. If the owners could alternatively earn 15% in outside investments, would they choose to invest this money within the company or in their outside investments? Why? 17. Calculate the Earnings Per Share 18. Calculate the Price Earnings Ratio Page 2 r. Briefly comment on your results in d. and e. Last Year ABC COMPANY Comparative Income Statement (dollars in thousands) This Year 79,000 52,000 27,000 Sales 74,000 Cost of goods sold Gross margin 48,000 26,000 Selling and administrative expenses: Selling expenses Administrative expenses Total selling and administrative expenses 8,500 12,000 8,000 11,000 19,000 20,500 Net operating income Interest expense Net income before taxes Income taxes Net income 6,500 600 5,900 2,360 3,540 7,000 600 6,400 2,560 3,840 $ $ Additional Information Dividends to common stockholders 320 320 Page 2 of 5 Graded problem Chapter 14- Financial Accounting Comparative financial statements for ABC, a merchandising company for the calendar year ended 12/31/18 are below. The Company did not issue any new common stock during the year. A total of 800,000 shares of common stock were outstanding. The interest rate on the bond payable was 12% the income tax rate was 40% and the dividend per share of common stock was $.40. The market value of the company's common stock at the end of the year was $18. All of the Company's sales are on account. Required: Using the information above and below as needed, calculate, or comment as appropriate, regarding the following ratios for the CURRENT YEAR: 1. Working Capital 2. Current Ratio 3. Acid-Test (Quick) Ratio 4. Briefly comment (one or two sentences) about the collective information provided by the ratios 1-3. 5. Accounts Receivable Turnover 6. Average Collection Period (Days Sales Outstanding in Receivables) 7. Briefly comment (one or two sentences) about the information in 5 & 6. If credit terms are 2/10;n 30, would you be concerned? Why or why not