Answered step by step
Verified Expert Solution
Question
1 Approved Answer
The following ratios have been computed for Al-Aqsa company for 2012 Profit Margin = 20% Times interest earned = 9 times Receivables turnover = 3
The following ratios have been computed for Al-Aqsa company for 2012 Profit Margin = 20% Times interest earned = 9 times Receivables turnover = 3 Times Acid test ratio = 2.1 Current ratio = 3.1 Debt to total assets ratio = 20% For 2011 Cash = 450 000 Marketable Securities = 25,000, A/R (net) = 40,000 Inventory = 50 000 Fixed assets (net) = 160,000, Total assets = 320,000 Account payable = 30,000 Short term notes payable = 35,000 Bonds payable = 20,000 ,Common stock = 200000 Retained earnings = 35,000 Total liabilities and Equity = 320,000 For 2012 Cash = 30,000, Marketable Securities = 10,000, A/R (net)=A, Inventory = B Fixed Assets = 200,000 Total Assets = K A/P = C, Short term notes payable = 400,000, Bonds payable =D Common stock = 220,000 Retained earnings = 60,000, Total liabilities and equity = L Items of income statement for December 31,2012 Net Sales = 150,000 ,Cost of goods sold = 75,000, Depreciation expense = E, Interest Expense = 5000, Selling Expenses = 8000 Administrative expenses = 12000 Total operating expenses = F. Income before Taxes = G, Income Tax expense = H Net Income = * = Operating expenses (F).8 (3 ) 30,000 40,000 35,000 32,000
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started