Question
From the following information, compute the ratios indicated and place the proper numbers in the spaces provided. Assume the average for the year is the
From the following information, compute the ratios indicated and place the proper numbers in the spaces provided. Assume the average for the year is the same as the ending balances for the balance sheet accounts. Round answers to one decimal place, and show your work.
A Corporation | ||
Balance Sheet | ||
December 31, 2014 | ||
Assets | ||
Cash | $ 40,000 | |
Marketable securities | 10,000 | |
Accounts receivable (net) | 45,000 | |
Inventory | 70,000 | |
Prepaid expenses | 20,000 | |
Property, plant, and equipment | 210,000 | |
Total assets | $395,000 | |
Liabilities and Stockholders' Equity | ||
Current liabilities | $ 55,000 | |
Long-term liabilities | 120,000 | |
Stockholders' equity | 220,000 | |
Total liabilities and stockholders' equity | $395,000 |
A Corporation | |||
Income Statement | |||
For the Year Ended December 31, 2014 | |||
Net sales | $180,000 | ||
Cost of goods sold | 145,000 | ||
Gross margin | $ 35,000 | ||
Operating expenses | |||
Selling and administrative expenses | $ 10,000 | ||
Interest expense | 10,000 | ||
Income taxes expense | 6,000 | 26,000 | |
Net income | $ 9,000 |
The company had 5,000 shares of common stock issued and outstanding. The market price of common stock at year end was $16.00 per share. Dividends paid in 2014 were $0.50 per share.
Current ratio | Asset turnover | ||
Quick ratio | Return on assets | ||
Receivable turnover | Return on equity | ||
Days' sales uncollected | Debt to equity ratio | ||
Inventory turnover | Interest coverage ratio | ||
Profit margin | Days' inventory on hand | ||
Dividend yield | Price/earnings (P/E) ratio |
|
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