The below represents the comparative financial statements of Kamla Co Kamla Corporation Comparative Income Statement For the Years Ended December 31, 2016 and 2015 2016 2015 $1,228,000 $1,026,000 Net sales (all on account) Expenses: Cost of goods sold $812,000 $708,000 Selling and administrative 229,000 225,000 Interest expense 15,000 12,000 Income tax expense 22,000 32,400 Total expenses $1,088,400 $967,000 $139,600 $59,000 Net income Kamla Corporation Comparative Balance Sheet December 31, 2016 and 2015 Assets 2016 2015 Current assets: Cash $41,000 $37,600 Notes receivable 36,000 27,600 Accounts receivable (net) 171,600 148,800 Inventory 181,500 140,000 Total current assets 430,100 354,000 Property, plant, and equipment (net) 848,000 784,000 Total assets $1,278,100 $1,138,000 Liabilities and Stockholders' Equity Current liabilities: Accounts payable $248,000 $235,000 Notes payable 39,200 47,200 Total current liabilities $295,200 $274,200 Long-term liabilities: Bonds payable 162,400 240,000 Total liabilities $535,200 $436,600 Stockholders' equity: Common stock ($5 par) $300,000 $300,000 Retained earnings 401,400 442,900 Total stockholders' equity $701,400 742,900 Total liabilities and stockholders equity $1,278,100 $1,138,000 Additional data: 1) The common stock recently sold at $30 per share. 2) The weighted-average common shares outstanding for the two years, 2015 and 2016, was 70,000 shares. Compute the current ratio for 2016. (Round answer to 2 decimal places. Do not use dollar signs ($) when entering amounts. To see comma-formatted numbers reflected in your final answers, you must enter your answers with commas.) Current Ratio What does this calculated ratio mean? (Round answer to 2 decimal places. Do not use dollar signs ($) when entering amounts. To see comma-formatted numbers reflected in your final answers, you must enter your answers with commas.) to utilize the company needs to pay, it has $ For every dollar of of Compute the acid-test ratio for 2016. (Round answer to 2 decimal places. Do not use dollar signs ($) when entering amounts. To see comma-formatted numbers reflected in your final answers, you must enter your answers with commas.) Acid-Test Ratio = +$ + $ What does this calculated ratio mean? (Round answer to 2 decimal places. Do not use dollar signs ($) when entering amounts. To see comma-formatted numbers reflected in your final answers, you must enter your answers with commas.) to utilize of very For every dollar of the company needs to pay, it has $ Compute the receivables turnover ratio for 2016. (Round answer to 2 decimal places. Do not use dollar signs ($) when entering amounts. To see comma-formatted numbers reflected in your final answers, you must enter your answers with commas.) Accounts Receivable Turnover = times What does this calculated ratio mean? (Round answer to 2 decimal places. Do not use dollar signs ($) when entering amounts. To see comma-formatted numbers reflected in your final answers, you must enter your answers with commas.) |times a year/period. The Company its an average of Compute the profit margin ratio for 2016. (Round answer to 2 decimal places. Do not use dollar signs ($) when entering amounts. To see comma-formatted numbers reflected in your final answers, you must enter your answers with commas.) Profit Margin % What does this calculated ratio mean? (Round answer to 2 decimal places. Do not use dollar signs ($) when entering amounts. To see comma-formatted numbers reflected in your final answers, you must enter your answers with commas.) every period. The Company % on each dollar of as Compute the asset turnover ratio for 2016. (Round answer to 2 decimal places. Do not use dollar signs ($) when entering amounts. To see comma-formatted numbers reflected in your final answers, you must enter your answers with commas.) Asset turnover times What does this calculated ratio mean? (Round answer to 2 decimal places. Do not use dollar signs ($) when entering amounts. To see comma-formatted numbers reflected in your final answers, you must enter your answers with commas.) The Company generates $ for each dollar it in its Compute the return on assets ratio for 2016. (Round answer to 2 decimal places. Do not use dollar signs ($) when entering amounts. To see comma-formatted numbers reflected in your final answers, you must enter your answers with commas.) Return on Assets $ What does this calculated ratio mean? (Round answer to 2 decimal places. Do not use dollar signs ($) when entering amounts. To see comma-formatted numbers reflected in your final answers, you must enter your answers with commas.) The Company % on each dollar every period in its as Compute the return on common stockholders' equity ratio for 2016. (Round answer to 2 decimal places. Do not use dollar signs ($) when entering amounts. To see comma- formatted numbers reflected in your final answers, you must enter your answers with commas.) Return on common stockholders' equity What does this calculated ratio mean? (Round answer to 2 decimal places. Do not use dollar signs ($) when entering amounts. To see comma-formatted numbers reflected in your final answers, you must enter your answers with commas.) The Company % on each dollar by its Compute the earnings per share ratio for 2016. (Round answer to 2 decimal places. Do not use dollar signs ($) when entering amounts. To see comma-formatted numbers reflected in your final answers, you must enter your answers with commas.) Earnings per share (EPS) What does this calculated ratio mean? (Round answer to 2 decimal places. Do not use dollar signs ($) when entering amounts. To see comma-formatted numbers reflected in your final answers, you must enter your answers with commas.) The Company of on Compute the price-earnings ratio for 2016. (Round answer to 2 decimal places. Do not use dollar signs ($) when entering amounts. To see comma-formatted numbers reflected in your final answers, you must enter your answers with commas.) Price-earnings ratio times What does this calculated ratio mean? (Round answer to 2 decimal places. Do not use dollar signs ($) when entering amounts. To see comma-formatted numbers reflected in your final answers, you must enter your answers with commas.) on each share times the amount that the company The Company stock for Compute the payout ratio for 2016. (Round answer to 2 decimal places. Do not use dollar signs ($) when entering amounts. To see comma-formatted numbers reflected in your final answers, you must enter your answers with commas.) Payout ratio= What does this calculated ratio mean? (Round answer to 2 decimal places. Do not use dollar signs ($) when entering amounts. To see comma-formatted numbers reflected in your final answers, you must enter your answers with commas.) The Company % of its earnings in form of Compute the debt to total assets ratio for 2016. (Round answer to 2 decimal places. Do not use dollar signs ($) when entering amounts. To see comma-formatted numbers reflected in your final answers, you must enter your answers with commas.) Debt to Total Assets What does this calculated ratio mean? (Round answer to 2 decimal places. Do not use dollar signs ($) when entering amounts. To see comma-formatted numbers reflected in your final answers, you must enter your answers with commas.) % of the company's was provided by Compute the times interest earned ratio for 2016. (Round answer to 2 decimal places. Do not use dollar signs ($) when entering amounts. To see comma-formatted numbers reflected in your final answers, you must enter your answers with commas.) Times interest earned times What does this calculated ratio mean? (Round answer to 2 decimal places. Do not use dollar signs ($) when entering amounts. To see comma-formatted numbers reflected in your final answers, you must enter your answers with commas.) |times per year/period approximately The Company can cover its
