m-q

3 (Chapter 3). Financial Ratios. Consider the Ganges Tours, Inc. financial statements below. Calculate the following ratios: a. Current ratio b. Quick ratio. c. Cash ratio d. Total Debt ratio c. Debt-Equity ratio f. Inventory turnover. (Assume "Costs" are costs of good sold.) g. Days' sales in inventory h. Receivables turnover. i. Days' sales in receivables. j. Total Asset tumover. k. Profit margin. 1. Return on assets. m. Return on equity. n. Earnings per share. (Assume 40,000 shares outstanding.) o. Price-earnings ratio. (Assume market price - $50.) p. Market-to-book ratio. 4. Dividend payout ratio. Ganges Tours, Inc. 12/31/2020 Balance Sheet Assets Liabilities and Owners' Equity Current assets Current Liabilities Cash $12,500 Accounts Payable $30,000 Accounts Receivable 25,000 Notes Payable 15,000 Inventory 50.000 Total 45.000 Total 87,500 Long-term Debt 100,000 Fixed assets Owners' equity (OE) Net F/A 250,000 C/S + surplus 100,000 Retained Earnings 92.500 Total OE 192.500 Total Assets 337,500 Total Liab and OE 337,500 Ganges Tours, Inc. 2020 Income Statement Sales $500,000 Cost of Goods Sold 350,000 Other expenses 25,000 EBIT $125.000 Interest Expense 15,000 Taxable income $110,000 Taxes (21%) 16,170 Net Income $93.830 Dividends $40,000 Addition to RE $53,830