The balance sheet and income statement for the J. P. Robard Mfg. Company are as follows: J.
Question:
The balance sheet and income statement for the J. P. Robard Mfg. Company are as follows:
J. P. Robard Mfg., Inc. Balance Sheet ($000) | |
Cash | $480 |
Accounts receivable | 2,040 |
Inventories | 960 |
Current assets | $3,480 |
Net fixed assets | 4,570 |
Total assets | $8,050 |
Accounts payable | $1,150 |
Accrued expenses | 630 |
Short-term notes payable | 270 |
Current liabilities | $2,050 |
Long-term debt | 1,960 |
Owners' equity | 4,040 |
Total liabilities and owners' equity | $8,050 |
J. P. Robard Mfg., Inc. Income Statement ($000) | |
Net sales (all credit) | $7,910 |
---|---|
Cost of goods sold | (3,280) |
Gross profit | $4,630 |
Operating expenses (includes $500 depreciation) | (2,970) |
Net operating income | $1,660 |
Interest expense | (367) |
Earnings before taxes | $1,293 |
Income taxes (40%) | (517) |
Net income | $776 |
Calculate the following ratios:
Current ratio Times interest earned Inventory turnover Total asset turnover Operating profit margin | Operating return on assets Debt ratio Average collection period Fixed asset turnover Return on equity |
The company's current ratio is ___________.
Foundations of Finance The Logic and Practice of Financial Management
ISBN: 978-0132994873
8th edition
Authors: Arthur J. Keown, John D. Martin, J. William Petty