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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