Question
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
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:
LOADING...
. 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
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