From the income statement and balance sheet of Anderson Company (Figures 22.14 and 22.15), compute the following for 2016:

(a) Current ratio,

(b) Acid test ratio,

(c) Accounts receivable turnover,

(d) Average collection period,

(e) Inventory turnover,

(f) Asset turnover,

(g) Debt to total assets,

(h) Debt to stockholders' equity,

(i) Times interest earned,

(j) Gross profit rate,

(k) Return on sales,

(l) Return on total assets, 

(m) Return on stockholders' equity. Assume all sales are on credit.

Figure 22.14

Figure 22.15

Transcribed Image Text:

ANDERSON COMPANY COMPARATVE INCOME STATEMENT FOR YEARS ENDED DECEMBER 31, 2016, AND DECEMBER 31, 2015 December 31 2016 2015 Net Credit Sales Cost of Goods Sold Gross Profit from Sales 47000000 $381 00000 236 0000022000oo0 23400000 $161 00000 perating Expenses: 1234 0000 $109 00000 174000o 60000 17400 22161 olool 1기4|0|0|00 14600000 $126 4 0000 $8800000 34 60000 General and Administrative Total Operating Expenses Operating Income Less Interest Expense 51리 20000 56000 Income Before Taxes $8280000 29 00000 2484000 1160000 Income Taxes 579 6000 $ 174 0000 ANDERSON COMPANY COMPARATIVE BALANCE SHEET DECEMBER 31, 2016, AND DECEMBER 31, 2015 December 31 Assets 2016 2015 Current Assets: Cash Accounts Receivable, Net Merchandise Invento Prepaid Expenses 12 00000 3960000 59 2000o 66000 234 0o 00 372 63 2 20000 20000 720000 1174 0000$13100000 Total Current Assets Plant and Equipme nt Office Equipment, Net Total Assets $6560000 6600000 18300000$ 19700000 iabilities Current Liabilities: Notes Payable Accounts Payable 3680000$ 3220000 14800 00 $5180000 $ 47 00000 150000o Total Curre nt Liabilities Long-Term Liabilities Mortgage Payable Total Liabilities 35 60000 3100o 00 874 0000$ 7800000 Stockholders' Equity: Common Stock, $10 par value Retained Earnings 9000000 800 o 60o 39 Total Stockholde rs' Equity Total Liabilities and Stockholders' Equit 95600oo $ 1190 0 000 18300000 S 1970 0 000