Consider the following company€™s balance sheet and income statement.

For this company, calculate the following:
a. Current ratio.
b. Number of days€™ sales in receivables.
c. Sales to total assets.
d. Number of days in inventory.
e. Debt-to-asset ratio.
f. Cash-flow debt ratio.
g. Return on assets.
h. Return onequity.

Transcribed Image Text:

Balance Sheet Assets Liabilities and Equity Cash Accounts S4,000 Accounts payable Notes 30,000 12.000 42,000 receivable Inventory 52,000 payable 40,000 Total current liabilities Long-term debt 36,000 62.000 $140.000 Total current assets Fixed assets 96,000 44.000 Equity Total liabilities Total assets 140,000 and equity Income Statement Sales (all on credit) Cost of goods sold Gross margin Selling and administrative expenses Depreciation EBIT Interest expense Earnings before tax Taxes Net income $200,000 130,000 70,000 20,000 8,000 42,000 4.800 37.200 11.160 S 26.040