Question
Use the information from the balance sheet and income statement in the popup window, to calculate the following ratios: Balance Sheet ASSETS Cash $93,000 Accounts
Use the information from the balance sheet and income statement in the popup window, to calculate the following ratios:
Balance Sheet | ||||
ASSETS |
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| ||
Cash | $93,000 | |||
Accounts receivable | 40,000 | |||
Inventory | 43,000 | |||
Prepaid expenses | 11,000 | |||
Total current assets | $187,000 | |||
Gross plant and equipment | 396,000 | |||
Accumulated depreciation | (63,000) | |||
Total assets | $520,000 | |||
LIABILITIES AND OWNERS' EQUITY | ||||
Accounts payable | $92,000 | |||
Accrued liabilities | 66,000 | |||
Total current liabilities | $158,000 | |||
Long-term debt | 123,000 | |||
Common stock | 204,000 | |||
Retained earnings | 35,000 | |||
Total liabilities and equity | $520,000 |
|
Income Statement | ||||
Sales* | $211,000 | |||
Cost of goods sold | (90,000) | |||
Gross profit | $121,000 | |||
Selling, general, and administrative expenses | (31,000) | |||
Depreciation expenses | (26,000) | |||
Operating profits | $64,000 | |||
Interest expense | (15,000) | |||
Earnings before taxes | $49,000 | |||
Taxes | (10,290) | |||
Net income | $38,710 |
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* 12% of sales are cash sales. |
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a. Current ratio
b. Acid-test ratio
c. Times interest earned
d. Inventory turnover
e. Total asset turnover
f. Operating profit margin
g. Days in receivables
h. Operating return on assets
i. Debt ratio
j. Return on equity
k. Fixed asset turnover
Can someone help with this question, please!
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