J. P. Robard Mfg., Inc.
Balance Sheet ($000)
Cash	$480
Accounts receivable	2080
Inventories	940
Current assets	$3,500
Net fixed assets	4560
Total assets	$8,060
Accounts payable	$1,110
Accrued expenses	630
Short-term notes payable	340
Current liabilities	$2,080
Long-term debt	2060
Owners' equity	3920
Total liabilities and owners' equity	$8,060

The balance sheet and income statement for the J. P. Robard Mfg. Company are as follows:

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. Calculate the following ratios:

Current ratio Times interest earned Inventory turnover Total asset turnover Operating profit margin

Operating return on assets Debt ratio Average collection period Fixed asset turnover Return on equity

Question content area bottom

Part 1

The company's current ratio is

1.76

.

(Round to two decimal places.)

Part 2

The company's times interest earned is

enter your response here

times.(Round to two decimal places.)

In 2016, the Allen Corporation had sales of

$ 69

million, total assets of

$ 50

million, and total liabilities of

$ 22

million. The interest rate on the company's debt is

5.8

percent, and its tax rate is

35

percent. The operating profit margin is

13

percent.

a. Compute the firm's 2016 net operating income and net income.

b. Calculate the firm's operating return on assets and return on equity. (Hint: You can assume that interest must be paid on all of the firm's liabilities.)

Question content area bottom

Part 1

a. Compute the firm's 2016 net operating income and net income.

The firm's 2016 net operating income is

$8.97

million. (Round to two decimal places.)

Part 2

The firm's 2016 net income is

$4.86

million.(Round to two decimal places.)

In 2016, the Allen Corporation had sales of

$ 69

million, total assets of

$ 50

million, and total liabilities of

$ 22

million. The interest rate on the company's debt is

5.8

percent, and its tax rate is

35

percent. The operating profit margin is

13

percent.

a. Compute the firm's 2016 net operating income and net income.

b. Calculate the firm's operating return on assets and return on equity. (Hint: You can assume that interest must be paid on all of the firm's liabilities.)

Question content area bottom

Part 1

a. Compute the firm's 2016 net operating income and net income.

The firm's 2016 net operating income is

$8.97

million. (Round to two decimal places.)

Part 2

The firm's 2016 net income is

$4.86

million.(Round to two decimal places.)

J. P. Robard Mfg., Inc. Balance Sheet ($000) Cash $480 Accounts receivable 2,080 Inventories 940 Current assets $3,500 Net fixed assets 4,560 Total assets $8,060 Accounts payable $1,110 Accrued expenses 630 Short-term notes payable 340 Current liabilities $2,080 Long-term debt 2,060 Owners' equity 3,920 Total liabilities and owners' equity $8,060