The 2014 financial statements of Dalmac Energy Inc. follow:

Assume all sales were on credit. On the December 31, 2013, balance sheet, the assets totalled $432,720, common shares were $192,000, and retained earnings were $107,640.

Required
Calculate the following:
(a) Current ratio,
(b) Acid-test ratio,
(c) Days€™ sales uncollected,
(d) Merchandise turnover,
(e) Days€™ sales in inventory,
(f) Ratio of pledged plant assets to secured liabilities,
(g) Times interest earned,
(h) Profit margin,
(i) Total asset turnover,
(j) Return on total assets, and
(k) Return on common shareholders€™ equity.
Analysis Component: Identify whether the ratios calculated above compare favourably or unfavourably to the industry averages in Exhibit18.11.

Transcribed Image Text:

Dalmac Energy Inc. Income Statement Dalmac Energy Inc. Balance Sheet December 31, 2014 For Year Ended December 31, 2014 Cost of goods sold Merchandise inventory, Dec. 31, 2013 Cas. 22,200 24,480 52,080 10,560 59,040 5,760 326,520 75,360 Short-term investments Goods available for sale........................................$676,200 Notes receivable............................................. Cost of goods sold.617,160 Prepaid expenses Gross profit from sales Operating expen e Operating income $348,840 Plant and equipment, net 273,36 Tota asse s Liabilities and Equity 500,64 75,480 11,400 64,080 Accrued wages payable 18,864Income taxes payable. 6,240 6,960 Long-term note payable, secured by mortgage on plant and equipment.... Common shares, 160,000 shares 114,000 192,000 Total liabilities and equity.... $500,640