Question
Use the attached financial statements to calculate the following ratio: Assets Liabilities Current Assets Current Liabilities Cash 50 Accounts payable 42 Accounts receivable 22 Notes
Use the attached financial statements to calculate the following ratio:
Assets Liabilities
Current Assets Current Liabilities
Cash 50 Accounts payable 42
Accounts receivable 22 Notes payable/short-term debt 7
Inventories 17
Total current assets 89 Total current liabilities 49
Long-Term Assets Long-Term Liabilities
Net property, plant,
and equipment 121 Long-term debt 128
Total long-term assets 121 Total long-term liabilities 128
Total Liabilities 177
Stockholders Equity 33
Total Assets 210 Total Liabilities and 210
Stockholders Equity
Income Statement
Total sales 312
Cost of sales -210
Gross Profit 102
Selling, general,
and administrative expenses -34
Research and development -10
Depreciation and amortization -5
Operating Income 53
Other income -
Earnings before interest
and taxes (EBIT) 53
Interest income (expense) -20
Pretax income 33
Taxes -8
Net Income 25
1. Current ratio, quick ratio
2. Debt-to-equity ratio (Total debt vs. Total equity), equity multiplier, and times interest earned
3. Total asset turnover, inventory turnover, receivables turnover
4. Return on equity, return on assets, profit margin
5. DuPont Identity
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