Question
left column is for 2012 and right column is for 2013 Assets 2012 2013 Cash .................................................................................................. $ 20,000 $ 60,000 Accounts receivable (net) ................................................................. 30,000
left column is for 2012 and right column is for 2013
Assets 2012 2013
Cash .................................................................................................. $ 20,000 $ 60,000
Accounts receivable (net) ................................................................. 30,000 50,000
Inventory ........................................................................................... 20,000 30,000
Property, plant and equipment (net) ................................................. 170,000 220,000
Total assets ................................................................................. $240,000 $360,000
Liabilities
Current liabilities .............................................................................. $ 40,000 $ 60,000
Long-term liabilities ......................................................................... 70,000 100,000
Owners Equity
Common Stock ................................................................................. 100,000 120,000
Retained Earnings ............................................................................. 30,000 80,000
Total liabilities and owners equity ............................................ $240,000 $360,000
Net sales ............................................................................................ $500,000
Cost of goods sold ............................................................................ 280,000
Gross profit ....................................................................................... 220,000
Operating expenses ........................................................................... 160,000
Net income ........................................................................................ $ 60,000
What is the return on assets in 2013?
| a. | 16.7% |
| b. | 20.0% |
| c. | 22.5% |
| d. | 10.0% |
What is debt to equity in 2013?
| a. | 44.4% | |
| b. | 45.8% | |
| c. | 80.0% | |
| d. | 84.6% |
What is the return on equity in 2013?
| a. | 40.0% | |
| b. | 36.4% | |
| c. | 30.0% | |
| d. | 51.2% |
What is the current ratio in 2013?
| a. | 1.83 |
| b. | 2.50 |
| c. | 2.33 |
| d. | 2.00 |
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The Corporate Culture Audit
Authors: Nigel Bristow, Sarah J. Sandberg
1st Edition
095597075X, 978-0955970757
