Selected year-end financial statements of Overton Corporation follow. (All sales were on credit; selected balance sheet amounts at December 31, 2012, were inventory, $17,400; total assets, $94,900; common stock, $35,500; and retained earnings, $ 18,800.)

OVERTON CORPORATION

Income Statement

For Year Ended December 31, 2013

Sales . . . . . . . . . . . . . . . . . . . . . . $ 315,500

Cost of goods sold . . . . . . . . . . 236,100

Gross profit . . . . . . . . . . . . . . . . 79,400

Operating expenses . . . . . . . . . 49,200

Interest expense . . . . . . . . . . . . 2,200

Income before taxes . . . . . . . . . 28,000

Income taxes . . . . . . . . . . . . . . . 4,200

Net income . . . . . . . . . . . . . . . . $ 23,800

Required
Compute the following:
(1) Current ratio,
(2) Acid-test ratio,
(3) Days’ sales uncollected,
(4) Inventory turn-over,
(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.
Round to one decimal place, except for part 6 round to twodecimals.

Transcribed Image Text:

OVERTON CORPORATION Balance Sheet December 31,2013 Assets Liabilities and Equity Short-term investments6 Accounts receivable, net... Notes receivable (trade)* 6,900 Accrued wages payable 12,100 Income taxes payable 3,000 Long-term note payable, secured 3,300 2,600 30,000 2,000 Common stock. $5 par value. . 35,000 35,100 $117,500 Total liabilities and equity.. $117.500 ..13,500 by mortgage on plant assets.... Prepaid expenses Plant assets, net. Total assets