Question: From the following information, compute the ratios indicated and place the proper numbers in the spaces provided. Assume the average for the year is the
Anders Corporation
Balance Sheet
December 31, 20x5
Assets
Cash................................................$ 30,000
Marketable securities...............................20,000
Accounts receivable (net) .........................40,000
Inventory.............................................60,000
repaid expenses.....................................16,000
Property, plant, and equipment..................234,000
Total assets.......................................$400,000
Liabilities and Stockholders' Equity
Current liabilities.................................$ 60,000
Long-term liabilities...............................100,000
Stockholders' equity..............................240,000
Total liabilities and stockholders' equity......$400,000
Anders Corporation
Income Statement
For the Year Ended December 31, 20x5
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Anders had 4,000 shares of common stock issued and outstanding. The market price of common stock at year end was $15.00 per share. Dividends paid in 20x5 were $0.60 per share.
Current ratio
Asset turnover
Quick ratio
Return on assets
Receivable turnover
Return on equity
Days' sales uncollected
Debt to equity ratio
Inventory turnover
Interest coverage ratio
Profit margin
Days' inventory on hand
Dividend yield
Price/earnings (P/E) ratio
Net sales $160,000 Cost of goods sold 120,000 $ 40,000 Gross margin Operating expenses S 16,000 Selling and administrative expenses Interest expense 8,000 Income taxes expense 4,000 28,000 $ 12,000 Net income
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