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Requirement: Calculate Ratios 1-8 listed below using the following information: Wooden Structure Inc. Balance Sheet At Decemer 31, 2020 Assets Cash $95 Accounts Receivable 70
Requirement: Calculate Ratios 1-8 listed below using the following information: | ||||
Wooden Structure Inc. | ||||
Balance Sheet | ||||
At Decemer 31, 2020 | ||||
Assets | ||||
Cash | $95 | |||
Accounts Receivable | 70 | |||
Inventory | 125 | |||
Prepaid Insurance | 40 | |||
Property, plant, and equipment | ||||
(at carrying amount) | 355 | |||
Total Assets | $685 | |||
Liabilities and Stockholder's Equity | ||||
Accounts Payable | $100 | |||
Long Term Notes Payable | 120 | |||
Preferred Shares | 50 | |||
Common Shares | 300 | |||
Retain Earnings | 115 | |||
Total Liabilities and Stockholder's Equity | $685 | |||
Wooden Structure Inc. | ||||
Income Statement | ||||
For Year Ended Decemer 31, 2020 | ||||
Sales | $425 | |||
Cost of goods Sold | 205 | |||
Gross Profit | 220 | |||
Operating Expenses | ||||
Wages | $70 | |||
Depreciation | 10 | 80 | ||
Income from Operations | 140 | |||
Interest Expense | 11 | |||
Income before income taxes | 129 | |||
Income Tax Expense | 14 | |||
Net Income (Loss) | $115 | |||
Additional Information: | ||||
a. 70% of sales are on credit | ||||
b. Average of balance sheet items is equal to amounts at December 31 | ||||
c. Dividends have been paid in total of $12 | ||||
d. The number of common shares outstanding is 20 | ||||
Calculate the following Ratios: | ||||
Round Answers 2 decimal points | ||||
1. Current ratio | ||||
2. Return on total assets | ||||
3. Sales to total assets | ||||
4. Acid test ratio | ||||
5. Times interest earned | ||||
6. Earnings per share | ||||
7. Return on shareholders' equity |
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