In Class Exercise

Thursday, January 30, 2020

TTh Classroom Section

Use the income statement and balance sheet that you created on January 23, 2020 (Notice that I added Shares Outstanding, but otherwise the numbers are all the same.) Compute the ratios below:

Accounts Receivable 270,000 Accounts Payable 360,000

Building 500,000 Capital Surplus 100,000

Cash 190,000 Common Stock 300,000

Costs 600,000 Depreciation Expense 90,000

Dividends 93,800 Net Furniture & Fixtures 235,000

Goodwill 180,000 Interest Expense 60,000

Inventory 175,000 Line of Credit (used) 200,000

Long Term Loan 640,000 Machinery 350,000

Preferred Stock 220,000 Retained Earnings ?

Sales 970,000 Shares Outstanding 30,000

Tax rate 21%

Current Ratio = Current asset/Current liabilities Debt/Equity Ratio = Total Debt/Total Assets

DividendsPerShare=NetIncome/SharesOutstanding Total Asset Turnover=COGS/Accounts Payable

BookValuePerShare=Total Equity/Share Outstanding Days Sales in Receivables = 365/Payables Tur