Selected year-end financial statements AS follow. (Note: All sales are on credit; selected balance sheet amounts at
Question:
Selected year-end financial statements AS follow. (Note: All sales are on credit; selected balance sheet amounts at December 31, 2010, were inventory, $32,400; total assets, $182,400; common stock, $90,000; and retained earnings, $31,300.)
Income Statement
For Year Ended December 31, 2011
Sales . . . . . . . . . . . . . . . . . . . . $348,600
Cost of goods sold . . . . . . . . . . 229,150
Gross profit . . . . . . . . . . . . . . . .119,450
Operating expenses . . . . . . . . . . .52,500
Interest expense . . . . . . . . . . . . . . 3,100
Income before taxes . . . . . . . . . . 63,850
Income taxes . . . . . . . . . . . . . . . . 15,800
Net income . . . . . . . . . . . . . . . . $ 48,050
Required:
Compute the following
(1) Current ratio
(2) Acid-test ratio
(3) Days sales uncollected
(4) Inventory turnover
(5) Days sales in inventory
(6) Debt to equity ratio
(7) Times interest earned
(8) Profit margin ratio
(9) Total asset turnover
(10) Return on total assets
(11) Return on common stockholders equity
Financial statements are the standardized formats to present the financial information related to a business or an organization for its users. Financial statements contain the historical information as well as current period’s financial...
Step by Step Answer:
Financial Reporting Financial Statement Analysis and Valuation
ISBN: 978-0324302950
6th edition
Authors: Clyde P. Stickney