Question
Hello, need help calculating following ratios: 1.Current ratio 2.Return on total assets 3.Sales to total assets 4.Acid test ratio 5.Times interest earned 6.Earnings per share
Hello, need help calculating following ratios:
1.Current ratio
2.Return on total assets
3.Sales to total assets
4.Acid test ratio
5.Times interest earned
6.Earnings per share
7.Return on shareholders' equity
Given following information:
Fabtech
Balance Sheet At Decemer 31, 201X
Assets Cash $75
Accounts Receivable 90
Inventory 125
Prepaid Insurance 45
Property, plant, and equipment (at carrying amount) 350
Total Assets $685
Liabilities and Stockholder's Equity
Accounts Payable $65
Long Term Notes Payable 155
Preferred Shares 50
Common Shares 300
Retain Earnings 115
Total Liabilities and Stockholder's Equity $685
Fabtech Income Statement
For Year Ended Decemer 31, 201X
Sales $345
Cost of goods Sold 207
Gross Profit 138
Operating Expenses
Wages $66
Depreciation 10 76
Income from Operations 62
Interest Expense 12
Income before income taxes 50
Income Tax Expense 15
Net Income (Loss) $35
Additional Information:
a.70% of sales are on credit
b.Average of balance sheet items is equal to amounts at December 31
c.Dividends have been paid in total of $12
d.The number of common shares outstanding is 20
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