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Your friend, another accountant, has bet you that with your knowledge of accounting and just the computations for common analytical measures, you can figure out

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Your friend, another accountant, has bet you that with your knowledge of accounting and just the computations for common analytical measures, you can figure out many aspects of a company's financial statements. You take the bet! Match each computation to one of the liquidity and solvency measures in the table. (Hint: Begin by looking for simple computations and identifying the amounts in those computations. Look for other measures that use those amounts.) Liquidity and Solvency Measures Computations $2,550,000 + $4,059,000 Ratio of liabilities to stockholders' equity Quick ratio $1,866,000 + $860,000 $8,260,000+ [($714,000 + 5740,000) + 2] Accounts receivable turnover [(81,072,000+ $1,100,000) + 2) + (54,100,000 - 365) [(5714,000 + $740,000) + 2) + ($8,260,000 + 365) Number of days' sales in inventory Number of days' sales in receivables Ratio of fixed assets to long-term liabilities Working capital $2,690,000+ $1,690,000 $3,095,000 - $860,000 Times interest earned (5976,800 + $127.000) - S127,000 Inventory turnover $4,100,000+ [(51,072,000+ $1,100,000) + 2] $3,095,000 - $860,000 Current ratio Match each computation to one of the profitability measures in the table. Profitability Measures Computations Asset turnover $8,260,000+ [($5,785,000 + $5,595,000) + 2] V Return on total assets ($791,340 + $127,000) + [($6,609,000 + $6,419,000) + 2] V Return on stockholders' equity $791,340 + [($4,059,000 + $3,856,050) + 2] Return on common stockholders' equity ($791,340 - $65,000) = [($3,571,500 +$3,428,640) + 2] Earnings per share on common stock ($791,340 - $65,000) 250,000 shares Price-earnings ratio $35 + $3.05 Dividends per share $175,000 250,000 shares Dividend yield $0.70 - $35 Use the following comparative income statement form to enter amounts you identity from the computations on the Liquidity and Solvency Measures panel and on the Profitability Measures panel. Compute any missing amounts and complete the horizontal analysis columns. Enter percentages as decimal amounts, rounded to one decimal place. When rounding, look only at the figure to the right of one decimal place. If

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