Given below are selected data from the comparative income statement and balance sheet for Titanic Corporation for
Question:
Given below are selected data from the comparative income statement and balance sheet for Titanic Corporation for the years ended December 31, 2021 and 2020:
2021 (RM) | 2020 (RM) | |
Net sales (all on credit) Cost of goods sold Gross profit Income from operations Interest expense Net income Cash Accounts receivable, net Inventory Prepaid expenses Total current assets Total long-term assets Total current liabilities Total long-term liabilities Common stock, no par Retained earnings | 96,000 51,300 44,700 16,300 3,000 9,800 2,700 10,700 25,000 1,000 39,400 50,000 39,000 15,000 *10,000 25,400 | 93,000 52,500 40,500 15,000 3,500 9,000 3,500 12,500 30,000 900 46,900 67,000 49,500 25,000 10,000 29,400 |
*NOTE: 1,000 shares of common stock have been issued and outstanding since the company started operations. During the entire fiscal year ended December 31, 20X8, the stock was selling for
$45 per share.
Calculate the following ratios at December 31, 2021. Show your calculations):
g) inventory turnover
h) days’ sales in receivables
i) debt ratio
j) book value per share of common stock
k) price/earnings ratio
l) times-interest-earned ratio
Horngrens Accounting
ISBN: 978-0133855388
10th Canadian edition Volume 2
Authors: Tracie L. Miller-Nobles, Brenda L. Mattison, Ella Mae Matsumura, Carol A. Meissner, Jo-Ann L. Johnston, Peter R. Norwood