Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

The income statement and balance sheet for Newman Inc. are provided below. Calculate the follwing ratios flr Newman, Inc. for the year 2019 only. current

The income statement and balance sheet for Newman Inc. are provided below.
image text in transcribed
image text in transcribed
Calculate the follwing ratios flr Newman, Inc. for the year 2019 only.
current ratio
total asset turnover
total debt ratio
quick ratio
inventory turnover
return on equity
return on assets
equity multiplier
times interest earned ratio
profit margin
Balance Sheets as of December 31, 2018 and 2019 (in 000s) 2018 2019 2018 2019 Assets Liabilities and Owners' Equity Current assets Current liabilities Cash $ 250 $ 350 Accounts payable $ 500 $ 900 Accounts receivable 500 490 Notes payable 900 700 Inventory 750 960 Total $1,500 $1,800 Total $ 1,400 $ 1,600 $ 400 $ 200 Long-term debt Owners' equity Common stock Accumulated retained earnings 235 $ 200 $ 500 Fixed assets 965 Net plant and equipment $ 1,000 $ 1,200 Total Equity $ 700 $ 1,200 Total assets $2,500 $3,000 Total liabilities and owners' equity $2,500 $ 3,000 2019 Income Statement (in 000s) Sales Cost of goods sold Depreciation $ 2,500 1,600 50 ta EBIT Interest paid 850 65 Taxable income Taxes $ 785 165 Net income $ 620 $ 155 Dividends Retained earnings 465

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

New Issues In Financial Institutions Management

Authors: F Fiordelisi, P Molyneux, D Previati

2010th Edition

0230278108, 978-0230278103

More Books

Students also viewed these Finance questions