Selected year-end financial statements AS follow. (Note: All sales are on credit; selected balance sheet amounts at December 31, 2010, were inventory, $32,400; total assets, $182,400; common stock, $90,000; and retained earnings, $31,300.)

Income Statement

For Year Ended December 31, 2011

Sales . . . . . . . . . . . . . . . . . . . . $348,600

Cost of goods sold . . . . . . . . . . 229,150

Gross profit . . . . . . . . . . . . . . . .119,450

Operating expenses . . . . . . . . . . .52,500

Interest expense . . . . . . . . . . . . . . 3,100

Income before taxes . . . . . . . . . . 63,850

Income taxes . . . . . . . . . . . . . . . . 15,800

Net income . . . . . . . . . . . . . . . . $ 48,050

Required:
Compute the following
(1) Current ratio
(2) Acid-test ratio
(3) Days sales uncollected
(4) Inventory turnover
(5) Days sales in inventory
(6) Debt to equity ratio
(7) Times interest earned
(8) Profit margin ratio
(9) Total asset turnover
(10) Return on total assets
(11) Return on common stockholders equity

Transcribed Image Text:

Balance Sheet December 31, 2011 Assets Liabilities and Equity $ 9,000 $ 16,500 . 2,200 Cash . Accounts payable . Accrued wages payable . Short-term investments . .7,400 Accounts receivable, net . Income taxes payable . . . 28,200 2,300 . 3,500 Notes receivable (trade)* . Long-tem note payable, secured Merchandise inventory . 31,150 by mortgage on plant assets . 62,400 Common stock, S1 par value . Prepaid expenses 1,650 90,000 Retained eamings.. Plant assets, net 152,300 59,800 Total liabilities and equity . Total assets $233,200 S233,200