The 2014 financial statements of Dalmac Energy Inc. follow: Assume all sales were on credit. On the
Question:
Assume all sales were on credit. On the December 31, 2013, balance sheet, the assets totalled $432,720, common shares were $192,000, and retained earnings were $107,640.
Required
Calculate the following:
(a) Current ratio,
(b) Acid-test ratio,
(c) Days sales uncollected,
(d) Merchandise turnover,
(e) Days sales in inventory,
(f) Ratio of pledged plant assets to secured liabilities,
(g) Times interest earned,
(h) Profit margin,
(i) Total asset turnover,
(j) Return on total assets, and
(k) Return on common shareholders equity.
Analysis Component: Identify whether the ratios calculated above compare favourably or unfavourably to the industry averages in Exhibit18.11.
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:
Fundamental Accounting Principles Volume II
ISBN: 978-1259066511
14th Canadian Edition
Authors: Larson Kermit, Jensen Tilly