The comparative financial statements prepared at December 31, 2022, for the Ace Company showed the following...

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The comparative financial statements prepared at December 31, 2022, for the Ace Company showed the following summarized data: 2022 $270,000* 165,000 Income Statement Sales revenue Cost of goods sold Gross margin Operating expenses & interest expense Pretax income Income tax Net income Balance Sheet Cash Accounts receivable (net) Inventory Operational assets (net) Total Assets 105,000 84,000 21,000 5,000 $ 16,000 $ 16,000 21,000 60,000 67,500 $164.500 2021 $247,500 150,000 97,500 79,500 18,000 4,500 $13.500 $ 12,000 27,000 52,500 57,000 $ 148,500 Current liabilities (no interest) Long-term liabilities (10% interest) Common stock (par value $5) Retained earnings Total Liabilities & Stockholders' Equity $ 16,500 75,000 55,000 18,000** $164,500 $ 28,500 67,500 45,000 7,500 $148.500 *One-half was credit sales. **During 2022, cash dividends amounting to $5,500 were declared and paid. Note: The stock price is currently selling at $25 per share. Required: Compute the following 10 ratios on the answer sheets provided for 2022 based on the information for the Ace Company (show all of your work and round your final answer to two decimal places indicating the appropriate designation). Return on equity Earnings per share Profit margin Current ratio Quick ratio Dividends yield ratio Price earnings ratio Debt to equity ratio Time interest earned ratio Inventory turnover ratio The comparative financial statements prepared at December 31, 2022, for the Ace Company showed the following summarized data: 2022 $270,000* 165,000 Income Statement Sales revenue Cost of goods sold Gross margin Operating expenses & interest expense Pretax income Income tax Net income Balance Sheet Cash Accounts receivable (net) Inventory Operational assets (net) Total Assets 105,000 84,000 21,000 5,000 $ 16,000 $ 16,000 21,000 60,000 67,500 $164.500 2021 $247,500 150,000 97,500 79,500 18,000 4,500 $13.500 $ 12,000 27,000 52,500 57,000 $ 148,500 Current liabilities (no interest) Long-term liabilities (10% interest) Common stock (par value $5) Retained earnings Total Liabilities & Stockholders' Equity $ 16,500 75,000 55,000 18,000** $164,500 $ 28,500 67,500 45,000 7,500 $148.500 *One-half was credit sales. **During 2022, cash dividends amounting to $5,500 were declared and paid. Note: The stock price is currently selling at $25 per share. Required: Compute the following 10 ratios on the answer sheets provided for 2022 based on the information for the Ace Company (show all of your work and round your final answer to two decimal places indicating the appropriate designation). Return on equity Earnings per share Profit margin Current ratio Quick ratio Dividends yield ratio Price earnings ratio Debt to equity ratio Time interest earned ratio Inventory turnover ratio

Answer rating: 100% (QA)

2022 Financial Ratios for Ace Company 1 Return on Equity ROE Net Income Average Stockholders Equity ... View the full answer