Current ratio Acid-test ratio Days in receivables Days in inventories Operating return on assets Operating profit...

Transcribed Image Text:

Current ratio Acid-test ratio Days in receivables Days in inventories Operating return on assets Operating profit margin Total asset turnover Fixed asset turnover Debt ratio Times interest earned Return on equity 2014 2015 W and T Corporation, Balance Sheet ($ thousands) for 12/31/2014 and 12/31/2015 ASSETS Cash Accounts receivable Inventories Other current assets Total current assets Gross fixed assets Accumulated depreciation Net fixed assets Total assets LIABILITIES (DEBT) AND EQUITY Accounts payable Short-term notes payable Total current liabilities Long-term debt Total liabilities Common equity: Common stock Retained earnings Total common equity Total liabilities and equity $200 $1,615 $4,650 $2,850 $4,465 $400 $750 $2,000 $1,100 $2,465 $4,465 2014 700 600 115 -1,800 350 1,250 1,365 $485 $2,240 $4,850 $2,650 $4,890 $540 $940 $2,290 $1,100 $2,600 $4,890 2015 915 680 160 -2,200 400 1,350 1,500 Current ratio Acid-test ratio Days in receivables Days in inventories Operating return on assets Operating profit margin Total asset turnover Fixed asset turnover Debt ratio Times interest earned Return on equity 2014 2015 W and T Corporation, Balance Sheet ($ thousands) for 12/31/2014 and 12/31/2015 ASSETS Cash Accounts receivable Inventories Other current assets Total current assets Gross fixed assets Accumulated depreciation Net fixed assets Total assets LIABILITIES (DEBT) AND EQUITY Accounts payable Short-term notes payable Total current liabilities Long-term debt Total liabilities Common equity: Common stock Retained earnings Total common equity Total liabilities and equity $200 $1,615 $4,650 $2,850 $4,465 $400 $750 $2,000 $1,100 $2,465 $4,465 2014 700 600 115 -1,800 350 1,250 1,365 $485 $2,240 $4,850 $2,650 $4,890 $540 $940 $2,290 $1,100 $2,600 $4,890 2015 915 680 160 -2,200 400 1,350 1,500

Answer rating: 100% (QA)

Solution Ratio Calculations Ratios 2014 2015 Current ratio 215 238 Acidtest ratio 135 166 Days in re... View the full answer