Using the financial statements for the Snider Corporation, calculate the 13 basic ratios found in the chapter.

SNIDER CORPORATION Balance Sheet December 31, 20X1
Assets
Current assets:
Cash		$	53,000
Marketable securities			26,400
Accounts receivable (net)			235,000
Inventory			257,000
Total current assets		$	571,400
Investments			65,100
Plant and equipment.	$699,000
Less: Accumulated depreciation	222,000
Net plant and equipment			477,000
Total assets		$	1,113,500
Liabilities and Stockholders' Equity
Current liabilities:
Accounts payable		$	94,200
Notes payable			70,600
Accrued taxes			14,000
Total current liabilities		$	178,800
Long-term liabilities:
Bonds payable			158,800
Total liabilities		$	337,600
Stockholders' equity
Preferred stock, $50 par value		$	100,000
Common stock, $1 par value			80,000
Capital paid in excess of par			190,000
Retained earnings			405,900
Total stockholders' equity		$	775,900
Total liabilities and stockholders' equity		$	1,113,500

SNIDER CORPORATION Income Statement For the Year Ending December 31, 20X1
Sales (on credit)	$	2,016,000
Cost of goods sold		1,319,000
Gross profit	$	697,000
Selling and administrative expenses		552,000	*
Operating profit (EBIT)	$	145,000
Interest expense		30,300
Earnings before taxes (EBT)	$	114,700
Taxes		89,800
Earnings after taxes (EAT)	$	24,900

*Includes $37,300 in lease payments.

Using the above financial statements for the Snider Corporation, calculate the following ratios.

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The Canton Corporation shows the following income statement. The firm uses FIFO inventory accounting.

CANTON CORPORATION Income Statement for 20X1
Sales	$	170,800	(12,200 units at $14.00)
Cost of goods sold		85,400	(12,200 units at $7.00)
Gross profit	$	85,400
Selling and administrative expense		8,540
Depreciation		11,000
Operating profit	$	65,860
Taxes (30%)		19,758
Aftertax income	$	46,102

b. Assets utilization ratios. (Do not round intermediate calculations. Round your answers to 2 decimal places.) Assets Utilization Ratios 8.58 times Receivable turnover Average collection period Inventory turnover 42.54 days times 4.23 times Fixed asset turnover Total asset turnover 1.81 times c. Now assume that in 20X3 the volume remains constant at 12,200 units, but the sales price decreases by 15 percent from its year 20X2 level. Also, because of FIFO inventory policy, cost of goods sold reflects the inflationary conditions of the prior year and is $7.50 per unit Further, assume selling and administrative expense will be 5 percent of sales and depreciation will be unchanged. The tax rate is 30 percent. Compute the aftertax income. (Round the sales price per unit to 2 decimal places but do not round any other intermediate calculations. Round your final answer to the nearest whole dollar amount.) Aftertax income 38,719