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REQUIRED: Calculate the following: (a) Current ratio (d) merchandise turnover (h) profit margin (b) Acid-test ratio (e) days' sales in inventory (i) total asset turnover
REQUIRED: | |||||||||||
Calculate the following: | |||||||||||
(a) Current ratio | (d) merchandise turnover | (h) profit margin | |||||||||
(b) Acid-test ratio | (e) days' sales in inventory | (i) total asset turnover | |||||||||
(c) day's sales uncollected | (f) ratio of pledged assets to secured liabilities | (j) return on total assets | |||||||||
(g) times interest earned | (k) return on common shareholder's equity | ||||||||||
Analysis component: | |||||||||||
Identify whether the ratio's calculated above compare favourably to the industry averages below: | |||||||||||
Current ratio | 1.6:1 | Times interest earned | 50 times | ||||||||
Acid-test ratio | 1.1:1 | Profit margin | 14% | ||||||||
Accounts receivable turnover | 16 times | Gross profit ratio | 18% | ||||||||
Day's sales uncollected | 21 days | Return on total assets | 20% | ||||||||
Merchandise turnover | 5 times | Return on common shareholder's equity | 32.70% | ||||||||
Day's sales in inventory | 70 days | Book value per common share | $8.63 | ||||||||
Total asset turnover | 2.3 times | Book value per preferred share | $15.00 | ||||||||
Accounts payable turnover | 4 times | Basic earnings per share | $1.79 | ||||||||
Debt ratio | 35% | Price-earnings per share | $18.20 | ||||||||
Equity ratio | 65% | Dividend yield | $0.35 | ||||||||
Pledged assets to secured liabilities | 1.4:1 |
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