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Selected year-end financial statements of McCord Corporation follow. (All sales were on credit; selected balance sheet amounts at December 31, 2010, were inventory, $47,900; total
Selected year-end financial statements of McCord Corporation follow. (All sales were on credit; selected balance sheet amounts at December 31, 2010, were inventory, $47,900; total assets, $189,400; common stock, $115,000; and retained earnings, $53,148.)
McCORD CORPORATION Income Statement For Year Ended December 31, 2011 | ||
Sales | $ | 452,600 |
Cost of goods sold | 296,850 | |
| | |
Gross profit | 155,750 | |
Operating expenses | 99,400 | |
Interest expense | 4,400 | |
| | |
Income before taxes | 51,950 | |
Income taxes | 20,928 | |
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Net income | $ | 31,022 |
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McCORD CORPORATION Balance Sheet December 31, 2011 | ||||||
Assets | Liabilities and Equity | |||||
Cash | $ | 22,000 | Accounts payable | $ | 17,500 | |
Short-term investments | 8,200 | Accrued wages payable | 4,600 | |||
Accounts receivable, net | 31,000 | Income taxes payable | 3,000 | |||
Notes receivable (trade)* | 5,000 | Long-term note payable, secured | ||||
Merchandise inventory | 34,150 | by mortgage on plant assets | 71,400 | |||
Prepaid expenses | 3,000 | Common stock | 115,000 | |||
Plant assets, net | 153,300 | Retained earnings | 45,150 | |||
| | | | |||
Total assets | $ | 256,650 | Total liabilities and equity | $ | 256,650 | |
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* These are short-term notes receivable arising from customer (trade) sales. |
Required: |
Compute the following. (Use 365 days a year. Do not round intermediate calculations and round your final answers to 1 decimal place. Omit the "%" sign in your response): |
(1) | Current ratio | to | ||
(2) | Acid-test ratio | to | ||
(3) | Days' sales uncollected (including note) | days | ||
(4) | Inventory turnover | times | ||
(5) | Days' sales in inventory | days | ||
(6) | Debt-to-equity ratio | to | ||
(7) | Times interest earned | times | ||
(8) | Profit margin ratio | % | ||
(9) | Total asset turnover | times | ||
(10) | Return on total assets | % | ||
(11) | Return on common stockholders' equity | % |
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