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The following information is available about the company: a. Selected financial ratios computed from Tanner's financial statements are given below: Current ratio Acid-test ratio Accounts
The following information is available about the company: a. Selected financial ratios computed from Tanner's financial statements are given below: Current ratio Acid-test ratio Accounts receivable turnover Inventory turnover Debt-to-equity ratio Times interest earned Earnins per share Return on total assets 2.90 1.17 20.0 7.0 0.920 4.0 $ 1.47 8% b. All sales during the year were on account. c. The interest expense on the income statement relates to the bonds payable; the amount of bonds outstanding did not change throughout the year. d. There were no changes in the number of shares of common stock outstanding during the year. e. Selected balances at the beginning of the current year (January 1) were as follows: Accounts receivable Inventory Total assets $ 200,000 $ 310,000 $1,500,000
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