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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, $32,400; 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, $32,400; total assets, $182,400; common stock, $90,000; and retained earnings, $31,300.) |
McCORD CORPORATION Income Statement For Year Ended December 31, 2011 | ||
Sales | $ | 348,600 |
Cost of goods sold | 229,150 | |
Gross profit | 119,450 | |
Operating expenses | 52,500 | |
Interest expense | 3,100 | |
Income before taxes | 63,850 | |
Income taxes | 15,800 | |
Net income | $ | 48,050 |
McCORD CORPORATION Balance Sheet December 31, 2011 | ||||||
Assets | Liabilities and Equity | |||||
Cash | $ | 9,000 | Accounts payable | $ | 16,500 | |
Short-term investments | 7,400 | Accrued wages payable | 2,200 | |||
Accounts receivable, net | 28,200 | Income taxes payable | 2,300 | |||
Notes receivable (trade)* | 3,500 | Long-term note payable, secured | ||||
Merchandise inventory | 31,150 | by mortgage on plant assets | 62,400 | |||
Prepaid expenses | 1,650 | Common stock | 90,000 | |||
Plant assets, net | 152,300 | Retained earnings | 59,800 | |||
Total assets | $ | 233,200 | Total liabilities and equity | $ | 233,200 | |
* 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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