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Using the financial statements provided below calculate the following ratios for EZ Home Services. 1) Earnings per share for 2019 2) Leverage ratio for 2019
Using the financial statements provided below calculate the following ratios for EZ Home Services. 1) Earnings per share for 2019 2) Leverage ratio for 2019 3) Accounts payable turnover for 2019 4) Days payable outstanding for 2019 5) Times interest earned ratio for 2019 Marks Available: 5 EZ Home Services Income Statement For The Year Ending December 31, 2019 Merchandise Sales 182.800 Cost of Goods Sold 112.300 Gross Profit 70.500 Operating Expenses Advertising Interest Office Rent Salaries Utilities 2.800 15,200 1.700 4.800 18,500 11,500 Total Expenses 54,500 Net Income 16.000 EZ Home Services Balance Sheet December 31, 2019 Current Assets: Cash Accounts Receivable - Net of AFDA Inventory Total Current Assets: 2019 6,000 13,000 14,000 33,000 2018 4,390 13,750 8,200 26,340 Capital Assets - Net of A/A Long-term Investments 48,500 23,800 53,260 19,800 Total Assets 105,300 99,400 Liabilities Current Liabilties Accounts payable Salary payable Unearned revenues Current portion of long-term debt Total current liabilities 14.250 1,250 1,600 4.800 21.900 20,750 750 900 4,800 27,200 Long-term Debt Total liabilities 24.000 45,900 28,800 56,000 Shareholders Equity Common shares (1000 shares @ $1 each) Retained earnings 1.000 58,400 1,000 42,400 Total Liabilities and Shareholders Equity 105,300 99,400
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