Question: Use the attached financial statements to calculate the following ratio: Assets Liabilities Current Assets Current Liabilities Cash 50 Accounts payable 42 Accounts receivable 22 Notes

Use the attached financial statements to calculate the following ratio:

Assets Liabilities

Current Assets Current Liabilities

Cash 50 Accounts payable 42

Accounts receivable 22 Notes payable/short-term debt 7

Inventories 17

Total current assets 89 Total current liabilities 49

Long-Term Assets Long-Term Liabilities

Net property, plant,

and equipment 121 Long-term debt 128

Total long-term assets 121 Total long-term liabilities 128

Total Liabilities 177

Stockholders Equity 33

Total Assets 210 Total Liabilities and 210

Stockholders Equity

Income Statement

Total sales 312

Cost of sales -210

Gross Profit 102

Selling, general,

and administrative expenses -34

Research and development -10

Depreciation and amortization -5

Operating Income 53

Other income -

Earnings before interest

and taxes (EBIT) 53

Interest income (expense) -20

Pretax income 33

Taxes -8

Net Income 25

1. Current ratio, quick ratio

2. Debt-to-equity ratio (Total debt vs. Total equity), equity multiplier, and times interest earned

3. Total asset turnover, inventory turnover, receivables turnover

4. Return on equity, return on assets, profit margin

5. DuPont Identity

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related Finance Questions!