Problem 1Compute the Acid-test or Quick ratio)

The following date are excerpt from Yin Corp. balance sheet:

Cash in hand: $ 25,000

Cash at bank: $ 50,000

Receivables: $ 45,000

Marketable securities: $100,000

Inventories:$ 60,000

Total current liabilities: $180,000

Problem 2(Compute the debt-to-equity ratio)

Yin Corp. provides the following information from its balance sheet:

Total liability: $2,500,000

Total equity: $10,000,000

Problem 3(Compute the Equity ratio)

Yin Corp. provides the following information from its balance sheet:

Total assets: $5,000,000

Total liabilities: $ 2,500,000

Total equity: $10,000,000

Problem 4(Compute the Profit margin)

Yin Corp. provides the following information from its state4ment of income:

Net income: $100,000

Gross sales: $1,000,000

Total discounts: $200,000

Problem 5 (Compute the Operating expense ratio)

In 2016, Yudelka Inc. operating expenses were $5,000,000 and its revenues were $20,000,000.

Problem 6(Compute the Account receivable turnover ratio)

Wally, Inc. had $20,000 of average receivables during FY 2014 and collected $40,000 of receivables during the same fiscal year.

Problem 7(Compute Yin fixed assets ratio)

Yin Company has gross fixed assets of $ 6,000,000 and accumulated depreciation of $2,000,000. Sales over the last 12 months totaled $12,000,000.

Problem 8 (one page maximum)

Why shall Financial expert use ratios with caution.