Computation of selected ratios. The following data is given: December 31, 2015 2014 Cash$ 66,000 $50,000 Accounts
Question:
Computation of selected ratios.
The following data is given:
December 31,
2015 2014
Cash$ 66,000 $50,000
Accounts receivable (net) 90,000 60,000
Inventories 90,000 110,000
Plant assets (net) 383,000 325,000
Accounts payable 55,000 40,000
Salaries and wages payable 10,000 5,000
Bonds payable 70,000 70,000
8% Preferred stock, $40 par 100,000 100,000
Common stock, $10 par 120,000 90,000
Paid-in capital in excess of par 80,000 65,000
Retained earnings 194,000 175,000
Net credit sales 900,000
Cost of goods sold 700,000
Net income 81,000
Instructions
Compute the following ratios:
(a)Acid-test ratio at 12/31/15
(b)Accounts receivable turnover in 2015
(c)Inventory turnover in 2015
(d)Profit margin on sales in 2015
(e)Return on common stock equity in 2015
(f)Book value per share of common stock at 12/31/15
Expert Answer:
Computation of following ratiosWe have a Acid Test ratio at 12312015We have AcidTest Rati... View the full answer
Statistics for Management and Economics Abbreviated
ISBN: 978-1285869643
10th Edition
Authors: Gerald Keller
