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 $550

Accounts receivable 2,100

Inventories 1,060

Current assets $3,710

Net fixed assets 4,520

Total assets $8,230

Accounts payable $1,200

Accrued expenses 610

Short-term notes payable 280

Current liabilities $2,090

Long-term debt 2,000

Owners' equity 4,140

Total liabilities and owners' equity $8,230

J. P. Robard Mfg., Inc. Income Statement ($000)

Net sales (all credit) $7,940

Cost of goods sold 3,310

Gross Profit $4,630

Operating expenses (includes $500 depreciation) 3,050

Net operating income $1,580

Interest expense 368

Earnings before taxes $1,212

Income taxes (40%) 485

Net income $727

1. Calculate the following ratios: 
2. 
   
3. Current ratio
4. Times interest earned
5. Inventory turnover
6. Total asset turnover
7. Operating profit margin
8. Operating return on assets
9. Debt ratio
10. Average collection period
11. Fixed asset turnover
12. Return on equity

Answer rating: 100% (QA)

a Current Ratio Current Ratio Current Assets Current Liabilities Current Assets 3710 Current Liabili... View the full answer