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The following table presents the data for CanDo Inc. as of December 31, 2018: Accounts payable $126,000 Accounts receivable $165,000 Cash and cash equivalents $106,000

The following table presents the data for CanDo Inc. as of December 31, 2018:

Accounts payable

$126,000

Accounts receivable

$165,000

Cash and cash equivalents

$106,000

CoGS

$271,600

Common stock

$1,090,000

Depreciation

$42,000

Dividend payout ratio

40%

Interest paid

$38,596

Inventory

$175,000

Long-term debt

$1,856,000

Net fixed assets

$2,932,000

Sales

$440,000

Short-term debt

$142,872

Tax rate

31%

Calculate the following financial ratios for CanDo Inc. in the fiscal year of 2018 (round all answers to six decimal places):

  1. Current ratio (1 mark)
  2. Quick ratio (1 mark)
  3. Cash ratio (1 mark)
  4. Net working capital ratio (1 mark)
  5. Interval measure (1 mark)
  6. Total debt ratio (1 mark)
  7. Debt-equity ratio (1 mark)
  8. Equity multiplier (1 mark)
  9. Long-term debt ratio (1 mark)
  10. Times interest earned (1 mark)
  11. Cash coverage ratio (1 mark)
  12. Inventory turnover (using avg. inventory from 2018 & 2019) (2 marks)
  13. Days’ sales in inventory (1 mark)
  14. Receivables turnover (using avg. accounts receivable from 2018 & 2019) (2 marks)
  15. Days’ sales in receivables (1 mark)
  16. Payables turnover (using avg. accounts payable from 2018 & 2019) (2 marks)
  17. Days’ sales in payables (1 mark)
  18. NWC turnover (1 mark)
  19. Fixed assets turnover (1 mark)
  20. Total asset turnover (1 mark)
  21. Profit margin (1 mark)
  22. Return on assets (ROA) (1 mark)
  23. Return on equity (ROE) (1 mark)
  24. Price-earnings (P/E) ratio (using price per share provided in Part 2) (3 marks)
  25. Market-to-book ratio (using price per share provided in Part 2) (3 marks)

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