Question
Information from the December 31, 2016 and December 31, 2017 Balance Sheet and Income Statement of the ABC Company is presented below. From this information
Information from the December 31, 2016 and December 31, 2017 Balance Sheet and Income Statement of the ABC Company is presented below. From this information compute the ratios for 2017 that are listed: Current Ratio, Gross Profit Ratio, Net Profit Ratio, Return on Assets, Return on Common Stockholders' Equity, Debt to Asset Ratio, Debt to Equity Ratio, times interest earned.
| 2017 | 2016 |
Current assets | $500,000 | $250,000 |
Property, Plant & Equipment | 1,300,000 | 1,050,000 |
Long-term investments | 200,000 | 200,000 |
Intangibles and other assets | 1,500,00 | 1,000,000 |
Current liabilities | 350,000 | 200,000 |
Long-term liabilities | 1,300,000 | 1,100,000 |
Common stock | 1,000,000 | 1,000,000 |
Retained earnings | 1,850,000 | 1,200,000 |
Net sales | 8,000,000 | 6,800,000 |
Cost of goods sold | 3.700.000 | 3,500,000 |
Other operating expenses | 2,800,000 | 2,500,000 |
Interest expense | 25,000 | 20,000 |
Income tax expense | 37,500 | 18,000 |
Dividends | 10,000 | 5,000 |
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