Question: Selected current year - end financial statements of Overton Corporation follow. ( All sales were on credit; selected balance sheet amounts at December 3 1
Selected current yearend financial statements of Overton Corporation follow. All sales were on credit; selected balance sheet amounts at December of the prior year were inventory, $; total assets, $; common stock, $; and retained earnings, $
OVERTON CORPORATION
Income Statement
For Current Year Ended December
Sales $
Cost of goods sold
Gross profit
Operating expenses
Income before taxes
Income tax expense
Net income $
OVERTON CORPORATION
Balance Sheet
December of Current Year
Assets Liabilities and Equity
Cash $ Accounts payable $
Shortterm investments Accrued wages payable
Accounts receivable,net Income taxes payable
Merchandise inventory Longterm note payable, secured by
Prepaid expenses mortgage on plant assets
Plant assets, net Common stock,$ par value
Retained earnings
Total assets $ Total liabilities and equity $
Required
Compute the following: current ratio, acidtest ratio, days sales uncollected, inventory turnover, days sales in inventory, debttoequity ratio, times interest earned, profit margin ratio, total asset turnover, return on total assets, and return on equity. Round to one decimal place; for part round to two decimals.
Check Acidtest ratio, to ; Inventory turnover, OVERTON CORPORATION
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