Calculate the following ratios, using the financial statements given below. Make sure to show your calculations: Current
Question:
Calculate the following ratios, using the financial statements given below. Make sure to show your calculations: Current Ratio
Total Debt Ratio
Times Interest Earned
Receivables Turnover
Days Sales in Receivables
Return on Assets.
Graphic Advertising, Inc.
2021 Income Statement
Sales $850,625
Cost of Goods Sold 520,379
Selling and Admin Exp 167,676
Depreciation 74,235
EBIT $88,335
Interest 25,630
EBT $62,705
Taxes 15,676
Net Income $47,029
Dividends $16,075
Addition to Retained Earnings 30,954
Graphic Advertising, Inc.
Balance Sheet as of December 31, 2021
Cash $18,961 Accounts Payable $11,271
Accounts Receivable 25,228 Notes Payable 18,624
Inventory 16,250 Current Liabilities $29,895
Current Assets $60,439 Long-term Debt $182,000
Net Fixed Assets $457,454 Owner's Equity $305,998
Total Assets $517,893 Total Liabilities and Owner Equity $517,893
Principles of Managerial Finance
ISBN: 978-1408271582
Arab World Edition
Authors: Lawrence J. Gitman, Chad J. Zutter, Wajeeh Elali, Amer Al Roubaix