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Working Backwards Using Common Ratios Suppose that Benjamin Company's assets, liabilities, and equity stayed the same during 2018. The following information for Benjamin Company for
Working Backwards Using Common Ratios Suppose that Benjamin Company's assets, liabilities, and equity stayed the same during 2018. The following information for Benjamin Company for 2018 has been assembled: Price-earnings ratio 37 Total equity $300,000 Debt ratio 80% Net income $81,900 Asset turnover 0.75 Current liabilities 250,000 Long-term assets $560,000 Required: Compute the following: When required round "Current ratio" answer to two decimal places and "Return on equity and Return on sales" answers to 1 decimal place. 1. Return on equity 27.3 % 2. Total assets 312,500 X 3. Net sales 4. Return on sales % 5. Current ratio 6. Total market value of shares
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