a. What is the quick ratio for 2009

b. What is debt ratio? (Use 2009 values)

c. What is the return on equity? (Use 2009 values)

d. How many days of sales are in receivables (Average Collection Period)? (Use 2009 value)

 

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Galaxy United, Inc. 2009 Income Statement Net sales $627,800 Less: Cost of goods sold 521,400 Less: Depreciation 11,200 Earnings before interest and taxes 95,200 Less: Interest paid 10,100 Taxable Income $85,100 Less: Taxes 28,900 Net income $56,200 Galaxy United, Inc. 2008 and 2009 Balance Sheets 2008 Cash $17,000 2009 $24,700 2008 2009 Accounts payable $128,600 $134,700 Accounts rec. 54,100 56,700 Long-term debt 147,500 141,000 Inventory 189,400 186,700 Common stock* 125,000 140,000 Sub-total $260,500 $268,100 Retained earnings 120,700 131,800 Net fixed assets 261,300 279,400 Total $521,800 $547,500 Total $521,800 $547,500 *The par value of the common stock is $1 per share. Galaxy United, Inc. 2009 Income Statement Net sales $627,800 Less: Cost of goods sold 521,400 Less: Depreciation 11,200 Earnings before interest and taxes 95,200 Less: Interest paid 10,100 Taxable Income $85,100 Less: Taxes 28,900 Net income $56,200 Galaxy United, Inc. 2008 and 2009 Balance Sheets 2008 Cash $17,000 2009 $24,700 2008 2009 Accounts payable $128,600 $134,700 Accounts rec. 54,100 56,700 Long-term debt 147,500 141,000 Inventory 189,400 186,700 Common stock* 125,000 140,000 Sub-total $260,500 $268,100 Retained earnings 120,700 131,800 Net fixed assets 261,300 279,400 Total $521,800 $547,500 Total $521,800 $547,500 *The par value of the common stock is $1 per share.