A summary of data from the income statements and balance sheet for Roman Construction Supply Company for
Question:
A summary of data from the income statements and balance sheet for Roman Construction Supply Company for 2011 and 2010 appears below.
Total assets and owner's equity at the beginning of 2010 were $680,000 and $420,000 respectively.
Required
1. Compute the following liquidity measures for 2010 and 2011:
(a) Working capital and
(b) Current ratio. Comment on the differences between the years.
2. Compute the following measures of profitability for 2010 and 2011:
(a) Profit margin,
(b) Asset turnover,
(c) Return on assets,
(d) Debt to equity ratio, and
(e) Return on equity. Comment on the change in performance from 2010 to 2011.
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...
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Related Book For
Principles Of Financial Accounting
ISBN: 9780538755160
11th Edition
Authors: Belverd E Needles, Marian Powers
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