Ink has spilled over some of the entries in the balance sheet and income
Long-term debt ratio..................................0.4
Times interest earned..................................6.5
Current ratio............................................1.4
Quick ratio..............................................1.0
Cash ratio...............................................0.2
Return on assets.......................................18%
Return on equity......................................20.53%
Inventory turnover....................................5.4
Average collection period...........................83.74 days
Income Statement (millions of dollars)
Net sales.......................................................... ˆ™ ˆ™ ˆ™
Cost of goods sold..............................................ˆ™ ˆ™ ˆ™
Selling, general, and administrative expenses...............10
Depreciation......................................................20
Earnings before interest and taxes (EBIT) ..................ˆ™ ˆ™ ˆ™
Interest expense.................................................ˆ™ ˆ™ ˆ™
Income before tax...............................................ˆ™ ˆ™ ˆ™
Tax................................................................ˆ™ ˆ™ ˆ™
Net income......................................................ˆ™ ˆ™ ˆ™

statement of ABC Corp. Can you use the following information to work out the missing entries? The ratio definitions in Table 4.6 were used.

Transcribed Image Text:

Balance Sheet (millions of dollars) This Year Last Year Assets: Cash and marketable securities 20 Trade receivables 34 Inventories 26 Total current assets 80 Net property, plant, and equipment 25 Total assets 105 Liabilities and shareholders' equity: Accounts payable 25 20 Notes payable 30 35 Total current liabilities 55 Long-term debt 20 Shareholders' equity 30 Total liabilities and shareholders' equity 115 105