The balance sheet and income statement for the J. P. Robard Mfg. Company are as follows: BALANCE
Question:
BALANCE SHEET. $ 000.
Cash................ $ 500
Accounts receivable........... 2,000
Inventories............... 1,000
Current assets............. $ 3,500
Net fixed assets.............. 4,500
Total assets................ $ 8,000
Accounts payable............. $ 1,100
Accrued expenses............. 600
Short- term notes payable.......... 300
Current liabilities............ $ 2,000
Long- term debt ............. 2,000
Owners€™ equity.............. 4,000
Total liabilities and owners€™ equity...... $ 8,000
Calculate the following ratios: Current ratio Operating return on assets Times interest earned Debt ratio Inventory turnover Average collection period Total asset turnover Fixed- asset turnover Operating profit margin Return on equity
Asset TurnoverAsset turnover is sales divided by total assets. Important for comparison over time and to other companies of the same industry. This is a standard business ratio. Balance Sheet
Balance sheet is a statement of the financial position of a business that list all the assets, liabilities, and owner’s equity and shareholder’s equity at a particular point of time. A balance sheet is also called as a “statement of financial...
Fantastic news! We've Found the answer you've been seeking!
Step by Step Answer:
Related Book For
Foundations of Finance The Logic and Practice of Financial Management
ISBN: 978-0132994873
8th edition
Authors: Arthur J. Keown, John D. Martin, J. William Petty
Question Posted: