Question
Use the following financial statement information as of the end of each year to answer following Questions. 2014 2013 Inventory $54,000 $48,000 Current assets 81,000
Use the following financial statement information as of the end of each year to answer following Questions. | ||
2014 | 2013 | |
Inventory | $54,000 | $48,000 |
Current assets | 81,000 | 1,06,000 |
Total assets | 3,82,000 | 3,26,000 |
Current liabilities | 27,000 | 36,000 |
Total liabilities | 1,02,000 | 88,000 |
Share capitalpreference | 40,000 | 40,000 |
Ordinary shareholders equity | 2,40,000 | 1,98,000 |
Net sales | 7,84,000 | 6,97,000 |
Cost of goods sold | 3,06,000 | 2,77,000 |
Net income | 1,34,000 | 90,000 |
Tax expense | 22,000 | 18,000 |
Interest expense | 12,000 | 12,000 |
Dividends paid to preference shareholders | 4,000 | 4,000 |
Dividends paid to ordinary shareholders | 15,000 | 10,000 |
Compute the times interest earned for 2014.
Select one:
a. 11.2 times.
b. 13.0 times
c. 65.3 times
d. 14.0 times.
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Question 2
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Compute the days in inventory for 2014.
Select one:
a. 24 days.
b. 6 days.
c. 64.4 days
d. 60.8 days.
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Question 3
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Compute the current ratio for 2014.
Select one:
a. 1.26:1.
b. 3.75:1.
c. .80:1.
d. 3.0:1.
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Question 4
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Compute the profi t margin for 2014.
Select one:
a. 17.1%.
b. 18.10%
c. 37.9%.
d. 5.90%
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Question 5
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Compute the return on ordinary shareholders equity for 2014.
Select one:
a. 51.7%.
b. 47.9%.
c. 59.40%
d. 61.2%.
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