This specific company is in the CAD/CAM/CAE industry and is the top supplier of software tools used to automate a manufacturing company. The following consolidated balance sheet and supplementary data are for Parametric for 2003:

Task:

Calculate the following ratios and show your computations.

For calculations normally involving averages, such as average accounts receivable or average stockholders' equity, use year-end amounts if the information is not available to use averages.

a. Current ratio.

b. Net income to average common stockholders' equity.

c. Number of days' sales in accounts receivable (assume 365 days in 2003).

d. EPS of common stock.

e. Times interest earned ratio.

f. Equity ratio.

g. Net income to net sales.

h. Total assets turnover.

i. Acid-test ratio

Current assets Cash and cash equivalents $ 325,872 Short-term investments 22,969 Accounts receivable, net of allowances for doubtful account of $6,270 183,804 Other current assets 95,788 Total current assets $ 628,433 Marketable investments 26,300 Property and equipment, net 66,879 Other assets 203,271 Total assets $ 924,883 Liabilities and stockholders' equity Current liabilities Accounts payable and accrued expenses $ 77,144 Accrued compensation 52,112 Deferred revenue 231,495 Income taxes 1,601 Total currents liabilities $ 362,352 Other liabilities 33,989 Stockholders' equity Preferred stock, $.01 par value; 5,000 shares authorized; none issued Common stock, $.01 par value; 500,000 shares authorized; 276,053 2,761 (2000) and 272,277 (1999) shares issued Additional paid-in capital 1,641,513 Foreign currency translation adjustment (12,629) Accumulated deficit (1,036,456) Treasury stock, at cost, 6,456 (2000) and 2,113 (1999) shares (66,647) Total liabilities and stockholders' equity $ 924,883 Net loss, (USD 3,980). Loss before interest and taxes, (USD 4,700). . Cost of goods sold, USD 244,984. Net sales, USD 928,414. Total interest expense for the year, USD 367. Weighted-average number of shares outstanding, 273,081