Question
The following information pertains to ABC Company. Assume that all balance sheet amounts represent both average and ending balance figures. Assume that all sales were
The following information pertains to ABC Company. Assume that all balance sheet amounts represent both average and ending balance figures. Assume that all sales were on credit.
Assets
Cash and short-term investments $ 45,000
Accounts receivable (net) 40,000
Inventory 20,000
Property, plant and equipment 210,000
Total Assets $305,000
Liabilities and Stockholders Equity
Current liabilities $ 50,000
Long-term liabilities 95,000
Stockholders equitycommon 160,000
Total Liabilities and Stockholders Equity $305,000
Income Statement
Sales $ 110,000
Cost of goods sold 66,000
Gross profit 44,000
Operating expenses 30,000
Net income $ 14,000
Number of shares of common stock 6,000
Market price of common stock $20
Dividends per share .50
Calculate the following:
AR Turnover
Inventory turnover
Current ratio
Quick ratio
Working capital
Return on assets
Return on equity
Profit margin
Earnings per share
PE ratio
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