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Sales 1 0 0 0 0 0 0 0 Cost of Goods Sold 8 0 0 0 0 0 0 Gross Profit 2 0 0

Sales10000000Cost of Goods Sold8000000Gross Profit2000000Selling/General Expenses1000000Operating profit1000000Interest Expense200000Income before tax800000Tax200000Net Income600000 Cash200000Accounts Receivable1000000Inventory1300000Total Current Assets2500000Fixed Assets3500000Total Assets6000000 Accounts Payable900000Bank Loan400000Total Current Liabilities1300000Bond payable700000Total Liabilities2000000Common Stock300000Retained Earnings3700000Total Liabilities/Equity6000000 Tax Rate0.25Shares Outstanding100000Market Price of Stock751. What is ABCs current ratio?A)1.89B)1.91C)1.92D)1.932. What is ABCs leverage ratio (total assets/equity)?A)1.4B)1.5C)1.6D)1.73. What is ABCs operating profit margin?A)0.07B)0.08C)0.09D)0.14. What is ABCs return on equity?A)15%B)16%C)17%D)18%5. What is ABCs PE ratio?A)12.2B)12.3C)12.4D)12.5

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