Wiemers Corporation’s comparative balance sheets are presented below:

Wiemers’s 2017 income statement included net sales of $100,000, cost of goods sold of $60,000, and net income of $15,000.

Instructions

Compute the following ratios for 2017.

(a) Current ratio.

(b) Acid-test ratio.

(c) Accounts receivable turnover.

(d) Inventory turnover.

(e) Profit margin.

(f) Asset turnover.

(g) Return on assets.

(h) Return on common stockholders’ equity.

(i) Debt to assets ratio.

Transcribed Image Text:

WIEMERS CORPORATION Balance Sheets December 31 2017 2016 Cash $ 4,300 $ 3,700 Accounts receivable (net) Inventory Land 21,200 10,000 20,000 70,000 (15,000) 23,400 7,000 26,000 70,000 (10,000) Buildings Accumulated depreciation-buildings Total $110,500 $120,100 Accounts payable $ 12,370 $ 31,100 69,000 20,000 Common stock 75,000 23,130 Retained earnings Total $110,500 $120,100