Have no idea how to even begin to work this out.
' The below represents the comparative nanCial stat'Emen'ts of Kam'ia corporation. Kamla Corporation Comparative Income Statement For the Years Ended December 31, 2016 and 2015 $1,228,000 Net sales (ail on account) $1,026,000 Qpenses: Cost of goods sold $812,000 $708,000 Selling and administrative 229,000 225,000 Interest expense 15,000 12,000 Income tax expense 32,400 22,000 Total expenses $1,088,400 $967,000 Net income $139,600 $59,000 Kamla Corporation Comparative Balance Sheet December 31, 2016 and Current assets: Cash Notes receivable Accounts receivable (net) Inventory Total current assets Property, plant, and equipment (net) Total assets Current liabilities: Accounts payable Notes payable Total current liabilities Longterm liabilities: Bonds payable Totai liabilities Stockholders' equity: Common stock ($5 par) Retained earnings Total stockholders' equity Total liabilities and stockholders' equity 2015 $41,000 36,000 171,600 181,500 430,100 848,000 $1,278,100 $248,000 47,200 $295,200 240,000 $535,200 $300,000 442,900 742,900 $1,278,100 $37,600 27,500 148,800 140,000 354,000 784,000 $1,138,000 $235,000 39,200 $274,200 162,400 $436,600 $300,000 401,400 $701,400 $1,138,000 Additional data: 1) The common stock recently sold at $30 per share. 2) The weighted-average common shares outstanding for the two years, 2015 and 2016, was 70,000 shares. Compute the current ratio for 2016. (Round answer to 2 decimal places. Do not use dollar signs ($) when enteril formatted numbers reflected in your final answers, you must enter your answers with commas.) Current Ratio = $ What does this calculated ratio mean? (Round answer to 2 decimal places. Do not use dollar signs ($) when enteri formatted numbers reflected in your final answers, you must enter your answers with commas.) For every dollar of the company needs to pay, it has $ of to utilize. Compute the acid-test ratio for 2016. ( Round answer to 2 decimal places. Do not use dollar signs ($) when entering a formatted numbers reflected in your final answers, you must enter your answers with commas.) Acid-Test Ratio = = ($ What does this calculated ratio mean? (Round answer to 2 decimal places. Do not use dollar signs ($) when entering an formatted numbers reflected in your final answers, you must enter your answers with commas.) For every dollar of the company needs to pay, it has $ of very to utilize. Compute the receivables turnover ratio for 2016. (Round answer to 2 decimal places. Do not use dollar signs see comma-formatted numbers reflected in your final answers, you must enter your answers with comma: Accounts Receivable Turnover = $ times What does this calculated ratio mean? ( Round answer to 2 decimal places. Do not use dollar signs ($) when er formatted numbers reflected in your final answers, you must enter your answers with commas.) The Company its an average of times a year/period.Compute the inventory turnover ratio for 2016. (Round answer to 2 decimal places. Do not use dollar signs ($) when entering amounts. To see comma-formatted numbers reflected in your final answers, you must enter your answers with commas.) Inventory Turnover = times What does this calculated ratio mean? (Round answer to 2 decimal places. Do not use dollar signs ($) when entering amounts. To see comma- formatted numbers reflected in your final answers, you must enter your answers with commas.) The Company its I an average of times a year/period. Compute the profit margin ratio for 2016. (Round answer to 2 decimal places. Do not use dollar signs ($) when entering amounts. To see comma-formatted numbers reflected in your final answers, you must enter your answers with commas.) Profit Margin = % What does this calculated ratio mean? (Round answer to 2 decimal places. Do not use dollar signs ($) when entering amounts. To see comma- formatted numbers reflected in your final answers, you must enter your answers with commas.) The Company % on each dollar of as "every period. Compute the asset turnover ratio for 2016. (Round answer to 2 decimal places. Do not use dollar signs ($) when entering amounts. To see comma-formatted numbers reflected in your final answers, you must enter your answers with commas.) Asset turnover = 2 times What does this calculated ratio mean? (Round answer to 2 decimal places. Do not use dollar signs ($) when entering amounts. To see comma- formatted numbers reflected in your final answers, you must enter your answers with commas.) The Company generates $ of for each dollar it in its
