Use the information from the balance sheet and income statement in the popup window, to calculate...

   

 

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Use the information from the balance sheet and income statement in the popup window, to calculate the following ratios: a. Current ratio b. Acid-test ratio c. Times interest earned d. Inventory turnover e. Total asset turnover f. Operating profit margin g. Days in receivables h. Operating return on assets i. Debt ratio j. Return on equity Balance Sheet ASSETS Cash Accounts receivable Inventory Prepaid expenses Total current assets Gross plant and equipment Accumulated depreciation Total assets LIABILITIES AND OWNERS' EQUITY Accounts payable Accrued abilities Total current liabilities Long-term debt Common stock $ 95.000 38,000 44,000 12,000 $ 189,000 398,000 (69,000) $ 518,000 $ 90,000 70.000 $ 150,000 12, 300 201.000 Data table Common stock Retained earnings Total liabilities and equity Income Statement Sales Cost of goods sold Gross profit Selling, general, and administrative expenses Depreciation expenses Operating profits Interest expense Earnings before taxes Taxes Net income 12% of sales are cash sales. 201,000 37,000 $518,000 $ 217,000 (88,000) 129,000 (27,000) (20,000) 82,000 (8,000) 74,000 (15,540) 58.460 Use the information from the balance sheet and income statement in the popup window, to calculate the following ratios: a. Current ratio b. Acid-test ratio c. Times interest earned d. Inventory turnover e. Total asset turnover f. Operating profit margin g. Days in receivables h. Operating return on assets i. Debt ratio j. Return on equity Balance Sheet ASSETS Cash Accounts receivable Inventory Prepaid expenses Total current assets Gross plant and equipment Accumulated depreciation Total assets LIABILITIES AND OWNERS' EQUITY Accounts payable Accrued abilities Total current liabilities Long-term debt Common stock $ 95.000 38,000 44,000 12,000 $ 189,000 398,000 (69,000) $ 518,000 $ 90,000 70.000 $ 150,000 12, 300 201.000 Data table Common stock Retained earnings Total liabilities and equity Income Statement Sales Cost of goods sold Gross profit Selling, general, and administrative expenses Depreciation expenses Operating profits Interest expense Earnings before taxes Taxes Net income 12% of sales are cash sales. 201,000 37,000 $518,000 $ 217,000 (88,000) 129,000 (27,000) (20,000) 82,000 (8,000) 74,000 (15,540) 58.460

Answer rating: 100% (QA)

To calculate the ratios well use the information provided in the balance sheet and income statement Lets calculate each ratio a Current ratio Current ... View the full answer