Question
The balance sheet and income statement for the J. P. Robard Mfg. Company are as follows: J. P. Robard Mfg., Inc. Balance Sheet ($000) Cash
The balance sheet and income statement for the J. P. Robard Mfg. Company are as follows:
J. P. Robard Mfg., Inc. Balance Sheet ($000) | |
Cash | $460 |
Accounts receivable | 1,950 |
Inventories | 950 |
Current assets | $3,360 |
Net fixed assets | 4,550 |
Total assets | $7,910 |
Accounts payable | $1,120 |
Accrued expenses | 600 |
Short-term notes payable | 270 |
Current liabilities | $1,990 |
Long-term debt | 2,010 |
Owners' equity | 3,910 |
Total liabilities and owners' equity | $7,910 |
J. P. Robard Mfg., Inc. Income Statement ($000) | |
Net sales (all credit) | $7,980 |
---|---|
Cost of goods sold | (3,250) |
Gross profit | $4,730 |
Operating expenses (includes $500 depreciation) | (2,910) |
Net operating income | $1,820 |
Interest expense | (370) |
Earnings before taxes | $1,450 |
Income taxes (40%) | (580) |
Net income | $870 |
. Calculate the following ratios:
Current ratio Times interest earned Inventory turnover Total asset turnover Operating profit margin | Operating return on assets Debt ratio Average collection period Fixed asset turnover Return on equity |
The company's times interest earned is
enter your response here
times. (Round to two decimal places.)
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