Selected year-end financial statements of Overton Corporation follow. (All sales were on credit; selected balance sheet amounts at December 31, 2014, were inventory, $17,400; total assets, $94,900; common stock, $35,500; and retained earnings, $18,800.)
OVERTON CORPORATION
Income Statement
For Year Ended December 31, 2015
Sales . . . . . . . . . . . . . . . . . . . . . . $315,500
Cost of goods sold . . . . . . . . . . . . 236,100
Gross profit . . . . . . . . . . . . . . . . . . 79,400
Operating expenses . . . . . . . . . . . . 49,200
Interest expense . . . . . . . . . . . . . . . . 2,200
Income before taxes . . . . . . . . . . . . 28,000
Income taxes . . . . . . . . . . . . . . . . . . 4,200
Net income . . . . . . . . . . . . . . . . . $ 23,800

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, and
(11) Return on common stockholders' equity.
Round to one decimal place; for part 6, round to two decimals.

Transcribed Image Text:

OVERTON CORPORATION Balance Sheet December 31,2015 Liabilities and Equity Assets Cash .6,100 Accounts payable 11,500 3,300 2,600 Accounts recelvable, net Notes recelvable (trade)* Merchandise Inventory Prepald expenses Plant assets, net Total assets 6,900 12,100 3,000 13,500 2,000 Accrued wages payable Income taxes payable Long-term note payable, secured by mortgage on plant assets Common stock, $5 par value 30,000 35,000 35,100 .. $I17,500 73,900 Retalned earnings $117,500 Total lablities and equity These are short-term notes receivable arising from customer (trade) sales.