Using the financial statements of Snider Corporation, calculate the 13 basic ratios

SNIDER CORPORATION Balance Sheet December 31, 20X1 

Assets 

Current assets: 

Cash $52,500 

Marketable securities 22,500 

Accounts receivable (net) 178,000 

Inventory 290,000 

Total current assets $543,000 

Investments 66,200 

Plant and equipment. $611,000 

Less: Accumulated depreciation 272,000 

Net plant and equipment 339,000 

Total assets $948,200 

Liabilities and shareholders' equity 

Current liabilities: 

Accounts payable $95,100 

Notes payable 78,700 

Accrued taxes 12,000 

Total current liabilities $185,800 

Long-term liabilities: 

Bonds payable 159, 405 

Total Liability2 $0.405 

Owner's Equity 

Preferred Stock, $50 

Par Value $100,000 

Common Stock, Nominal value of $ 1 80,000 

Capital paid in excess of the nominal value 190 000 

Utilities retained 233 000 

Total Accounting Capital $ 603 000 

Total Liabilities and Accounting Capital $ 948 200 

Snider Corporation Status of Results for the year ending December 31, 20x1 

Sales (on credit) $ 2 067 000 

OPERATIVE UTILITY (EBIT) $ 228,000 

Interest expense 30,100 

profit before tax (EBT) $ 197,900 

Taxes 83 000 gain after taxes (EAT) $ 114,900 *Includes $ 39,600 in lease payments. 

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

a. Profitability ratios. 

b. Asset utilization rates. 

c. Liquidity reasons.

d. Reasons for using the debt.