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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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