solve for

return on investment

quick ratio

debt to equity

return on owners equity

accounts receivable turnover

inventory turnover

Question #15 = 6-points 15. Using the financial statements below calculate each of the following ratios and briefly describe what the results of each indicate. (a.) Return on Investment (b.) Quick Ratio (c.) Debt to Equity Ratio (d.) Return on Owners' Equity (e.) Accounts Receivable Turnover (f.) Inventory Turnover Banner Corporation Balance Sheet December 31, 2008 Current Assets Current Liabilities Cash $ 20,000 Accounts Payable $ 140,000 Accounts Receivable 100,000 Wages Payable 200,000 Inventory 300,000 Total Current Liabilities $ 340,000 (2007 Y.E. Inv.=$350K) Total Current Assets $420,000 Property, Plant & Equipment Long-Term Liabilities Long Term Notes Payable $1,000,000 Land $300,000 Total Liabilities $1,340,000 Buildings 800,000 Equipment 90,000 Total Property Plant & Owners' Equity $ 270,000 Equipment $1,190,000 Total Liabilities and Total Assets $1,610,000 Owners' Equity $1,610,000 Total Assets 12/31/07 1,400,000 Accts Rec 12/31/07 $75,000 Total Owners' Equity 12/31/07 $250,000 Accts Pay 12/31/07 $100,000 (Note: Inventory on 12/31/07 = $350,000) Banner Corporation Income Statement For the year ended Dec 31, 2008 Salon Cost of Goods Sold $4,200,000 1,800,000 Gross Margin Operating Expenses $2,400,000 1.800.000 Operating Income $ 600,000