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Please solve part a-k. (Computing ratios) Use the information from the balance sheet and income statement in the popup window, 3, to calculate the following
Please solve part a-k.
(Computing ratios) Use the information from the balance sheet and income statement in the popup window, 3, to calculate the following ratios: a. Current ratio b. Acid-test ratio c. Times interest earned d. Inventory turnover e. Total asset turnover f. Operating profit margin g. Days in receivables h. Operating return on assets i. Debt ratio j. Return on equity k. Fixed asset turnover a. The current ratio is x. (Round to two decimal places.) ASSETS 91,000 38,000 40,000 19,000 $ 188,000 395,000 (67,000) $ 516,000 Cash Accounts receivable Inventory Prepaid expenses Total current assets Gross plant and equipment Accumulated depreciation Total assets LIABILITIES AND OWNERS' EQUITY Accounts payable Accrued liabilities Total current liabilities Long-term debt Common stock Retained earnings Total liabilities and equity $ 91,000 61,000 $ 152,000 121,000 200,000 43,000 $ 516,000 Income Statement Sales Cost of goods sold Gross profit Selling, general, and administrative expenses Depreciation expenses Operating profits Interest expense Eamnings before taxes Taxes Net income * 12% of sales are cash sales. $ 217,000 (89,000) $ 128,000 (29,000) (24,000) $ 75,000 (5,000) $ 70,000 (14,700) 55,300Step by Step Solution
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