Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

The following information pertains to Raleigh Company. Assume that all balance sheet amounts represent both average and ending balance figures. Assume that all sales were

The following information pertains to Raleigh 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

$ 40,000

Accounts receivable (net)

30,000

Inventory

25,000

Property, plant and equipment

280,000

Total Assets

$375,000

Liabilities and Stockholders Equity

Current liabilities

60,000

Long-term liabilities

95,000

Stockholders equity-common

220,000

Total Liabilities and stockholders equity

$375,000

Income Statement

Sales

$ 90,000

Cost of goods sold

45,000

Gross margin

45,000

Operating expenses

10,000

Net income

$ 35,000

Number of shares of common stock

6,000

Market price of common stock

$20

Dividends per share

1.00

Cash provided by operations

$40,000

Compute the following for Raleigh Company:

a. Current ratio

b. Receivables Turnover

c. Days Sales in Receivables

d. Inventory Turnover

e. Days Sales in Inventory

f. Total Asset Turnover

g. Debt Ratio

h. Leverage Ratio

i. Net Profit Margin

j. Return on Assets

k. Return on Equity

l. Earnings per Share

m. P/E Ratio

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

College Accounting Chapters 1-13

Authors: John Price

14th Edition

007763991X, 9780077639914

More Books

Students also viewed these Accounting questions

Question

=+a) Comparing the ratings of a new telephone set on a

Answered: 1 week ago