- Access to
**1 Million+**Textbook solutions - Ask any question from
**24/7**available

Tutors

Calculate the return on total assets for 2014 and evaluate the result against the industry average in Exhibit 18.11, explaining why it compares favorably or unfavourably (round to two decimal places).

Current ratio........................................................... 1.6:1

Acid-test ratio .......................................................... 1.1:1

Accounts receivable turnover .................................. 16 times

Days’ sales uncollected............................................ 21 days

Merchandise turnover ............................................. 5 times

Days’ sales in inventory ........................................... 70 days

Total asset turnover ................................................. 2.3 times

Accounts payable turnover...................................... 4 times

Debt ratio ............................................................... 35%

Equity ratio ............................................................. 65%

Pledged assets to secured liabilities.......................... 1.4:1

Times interest earned .............................................. 50 times

Profit margin........................................................... 14%

Gross profit ratio..................................................... 18%

Return on total assets .............................................. 20%

Return on common shareholders’ equity................. 32.7%

Book value per common share................................ $8.63

Book value per preferred share................................ $15.00

Earnings per share ................................................... $1.79

Price–earnings per share .......................................... 18.2

Dividend yield ......................................................... $0.35

Current ratio........................................................... 1.6:1

Acid-test ratio .......................................................... 1.1:1

Accounts receivable turnover .................................. 16 times

Days’ sales uncollected............................................ 21 days

Merchandise turnover ............................................. 5 times

Days’ sales in inventory ........................................... 70 days

Total asset turnover ................................................. 2.3 times

Accounts payable turnover...................................... 4 times

Debt ratio ............................................................... 35%

Equity ratio ............................................................. 65%

Pledged assets to secured liabilities.......................... 1.4:1

Times interest earned .............................................. 50 times

Profit margin........................................................... 14%

Gross profit ratio..................................................... 18%

Return on total assets .............................................. 20%

Return on common shareholders’ equity................. 32.7%

Book value per common share................................ $8.63

Book value per preferred share................................ $15.00

Earnings per share ................................................... $1.79

Price–earnings per share .......................................... 18.2

Dividend yield ......................................................... $0.35

- Access to
**1 Million+**Textbook solutions - Ask any question from
**24/7**available

Tutors