Company's December 31 Balance Sheets
Assets	2022	2021
Cash	$      72,000	$        65,000
Accounts receivable	439,000	328,000
Inventories	894,000	813,000
Total current assets	$ 1,405,000	$   1,206,000
Land and building	238,000	271,000
Machinery	132,000	133,000
Other fixed assets	61,000	57,000
Total assets	$ 1,836,000	$    1,667,000
Liabilities and equity
Accounts payable	$    432,000	$      409,500
Accrued liabilities	170,000	162,000
Total current liabilitiesDEBT	$    602,000	$      571,500
Long-term debtDEBT	404,290	258,898
Common stockEQUITY	575,000	575,000
Retained earningsEQUITY	254,710	261,602
Total liabilities and equity	$ 1,836,000	$    1,667,000
Company's December 31 Income Statement
	2022	2021
Sales	$ 4,240,000	$   3,635,000
Cost of goods sold	3,680,000	2,980,000
Gross operating profit	$    560,000	$      655,000
General admin. and selling epenses	236,320	213,550
Depreciation	159,000	154,500
Miscellaneous	134,000	127,000
EBT	$      30,680	$      159,950
Taxes (40%)	12,272	63,980
Net income	$      18,408	$        95,970
Per-Share Data	2022	2021
EPS	$0.80	$4.17
Cash dividends	$1.10	$0.95
Market price (average)	$12.34	$23.57
P/E ratio	15.4	5.65
Number of shares outstanding	23,000	23,000

Solve the following using above data.

Ratio Analysis	2022	2021	Industry Avga
Liquidity
Current ratio			2.7
Asset Management
Inventory turnoverb			7.0
Days sales oustandingc			32
Inventory daysc			52
Total assets turnoverb			2.6
Profitability
Return on assets			9.1%
Return on equity			18.2%
Net Profit margin			3.5%
Debt Management
Total Debt ratio			50.0%
Market Value
P/E ratio			6.0

Answer rating: 100% (QA)

To solve the given ratio analysis I will use the information provided in the companys balance sheet ... View the full answer