Question
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
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