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Pages 11. Consider the Ganges Tours, Inc. Financial statements below. Calculate the following ratios: a. Current ratio. b. Quick ratio. c. Cash ratio. d. Total

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Pages 11. 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 e. Debt-Equity ratio. f. Inventory turnover. (Assume "Costs" are costs of Goods sold.) g. Days' sales in inventory. h. Receivables turnover. i. Days' sales in receivables. j. Total Asset turnover. k. Profit margin. 1. Return on assets. m. Return on equity. n. Earnings per share. (Assume 100,000 shares outstanding.) o. Price-earnings ratio. (Assume market price = $10.) p. Market-to-book ratio. 9. Dividend payout ratio. Ganges Tours, Inc. 12/31/2016 Balance Sheet Assets Liabilities and Owners' Equity Current assets Current Liabilities Cash $25.000 Accounts Payable $60,000 Accounts Receivable 50,000 Notes Payable 30.000 Inventory 100.000 Total 90.000 Total 175,000 Long-term Debt 200,000 Fixed assets Owners' equity (OE) Net F/A 500,000 CIS+ surplus 200,000 Retained Earnings 185,000 Total OE 385,000 Total Assets 675,000 Total Liab and OE 675.000 Ganges Tours, Inc. 2016 Income Statement Sales $1.000.000 Cost of Goods Sold 700,000 Other expenses 50,000 EBIT $250.000 Interest Expense 30,000 Taxable income $220,000 Taxes (35%) 77.000 Net Income $143.000 o. Price carings ratio. (Assume market price = $10.) p. Market-to-book ratio. 4. Dividend payout ratio. Ganges Tours, Inc. 12/31/2016 Balance Sheet Assets Liabilities and Owners' Equity Current assets Current Liabilities Cash $25,000 Accounts Payable $60,000 Accounts Receivable 50,000 Notes Payable 30.000 Inventory 100.000 Total 90.000 Total 175,000 Long-term Debt 200.000 Fixed assets Owners' equity (OE) Net FIA 500,000 C/S + surplus 200,000 Retained Earnings 185.000 Total OE 385.000 Total Assets 675,000 Total Liab and OE 675,000 Ganges Tours, Inc. 2016 Income Statement Sales $1,000,000 Cost of Goods Sold 700.000 Other expenses 50.000 EBIT $250.000 Interest Expense 30.000 Taxable Income $220.000 Taxes (35%) 77.000 Net Income $143.000 4 Dividends Addition to RE $57.200 $85.800

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