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Please show me the full work so that I could study to prepare same questions just with different wordings! Appreciate your works!! a. 1. Use
Please show me the full work so that I could study to prepare same questions just with different wordings!
Appreciate your works!!
a. 1. Use the financial statements below to calculate five financial performance ratios. What is the net working capital to total assets ratio for 2012? b. How many days on average does the company take the company to sell inventory? (Use 2012 values) c. How many dollars of sales are generated from every dollar of net fixed assets? (Use 2012 values) d. What is the times interest earned ratio for 2012? e. What is the return on equity for 2012? Precision Tool 2012 Income Statement Net sales $36,408 Less: Cost of goods sold 28,225 Less: Depreciation 1,760 Earnings before interest and taxes 6,423 Less: Interest paid 510 Taxable Income $5,913 Less: Taxes 2,070 Net income $3,843 Precision Tool 2011 and 2012 Balance Sheets 2011 2012 2011 2012 Cash $2,060 $1,003 Accounts payable $7,250 $8,384 Accounts rec. 3,411 4,218 Long-term debt 9,800 11,500 Inventory 18,776 21,908 Common stock 15,000 17,500 Total $24,247 $27,129 Retained earning 6,357 3,825 Net fixed assets 14,160 14,080 Total assets $38,407 $41,209 Total liab & equity $38,407 $41,209
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