Following are the balance sheet of Faustin Company's for 2014. FAUSTIN COMPANY'S Balance sheet Assets Cash..........................................................$ 14,950

Question:

Following are the balance sheet of Faustin Company's for 2014.

FAUSTIN COMPANY'S

Balance sheet

Assets

Cash..........................................................$ 14,950

Marketable securities..........................................7,780

Accounts receivable..........................................12,800

Inventory......................................................11,300

Property and equipment....................................165,500

Accumulated depreciation.................................(12,400)

Total assets.................................................$199,930

Liabilities and Stockholders' Equity

Accounts payable..............................................$8,330

Current notes payable..........................................3,160

Mortgage payable...............................................4,000

Bonds payable................................................21,000

Common stock..............................................114,100

Retained earnings.............................................49,340

Total liabilities and stockholders' equity...............$199,930

The average number of common stock shares outstanding during 2014 was 850 shares. Net income for the year was $14,100.

Compute each of the following.

Required

a. Current ratio

b. Earnings per share

c. Quick (acid-test) ratio

d. Return on investment

e. Return on equity

f. Debt to equity ratio

Common Stock
Common stock is an equity component that represents the worth of stock owned by the shareholders of the company. The common stock represents the par value of the shares outstanding at a balance sheet date. Public companies can trade their stocks on... 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...