Compute the specified ratios using the following December 31, 2011, statement of financial position for Geofferey Company.
Question:
The average number of common shares outstanding during 2011 was 1,500. Net income for the year was $60,000.
Required
Compute each of the following:
a. Current ratio
b. Earnings per share
c. Acid-test ratio
d. Return on investment
e. Return on equity
f. Debt to equity ratio
Transcribed Image Text:
Assets $ 40,000 9,000 72,800 112,200 150,000 (24,000) $360,000 Cash Marketable securities Accounts receivable Inventory Property and equipment Accumulated depreciation Total assets Liabilities and Stockholders' Equity $ 39,200 Accounts payable Current notes payable Mortgage payable Bonds payable Common stock 6,800 62,000 42,000 128,000 82,000 Retained earnings Total liabilities and stockholders' equity $360,000
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a Current ratio 234000 46000 5091 b Earnings per s...View the full answer
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Related Book For
Fundamental Managerial Accounting Concepts
ISBN: 978-0078110894
6th Edition
Authors: Edmonds, Tsay, olds
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