Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Selected year-end financial statements of McCord Corporation follow. (All sales were on credit; selected balance sheet amounts at December 31, 2010, were inventory, $50,900; 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, $50,900; total assets, $219,400; common stock, $80,000; and retained earnings, $52,348.)
McCORD CORPORATION Income Statement For Year Ended December 31, 2011 | ||
Sales | $ | 451,600 |
Cost of goods sold | 296,950 | |
Gross profit | 154,650 | |
Operating expenses | 98,700 | |
Interest expense | 4,300 | |
Income before taxes | 51,650 | |
Income taxes | 20,807 | |
Net income | $ | 30,843 |
| | |
McCORD CORPORATION Balance Sheet December 31, 2011 | ||||||
Assets | Liabilities and Equity | |||||
Cash | $ | 20,000 | Accounts payable | $ | 24,500 | |
Short-term investments | 9,400 | Accrued wages payable | 3,600 | |||
Accounts receivable, net | 29,400 | Income taxes payable | 3,400 | |||
Notes receivable (trade)* | 6,000 | Long-term note payable, secured | ||||
Merchandise inventory | 32,150 | by mortgage on plant assets | 69,400 | |||
Prepaid expenses | 2,850 | Common stock | 80,000 | |||
Plant assets, net | 149,300 | Retained earnings | 68,200 | |||
Total assets | $ | 249,100 | Total liabilities and equity | $ | 249,100 | |
| | | | |||
* 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 | 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 | % |
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started