107) Lucky Strike Tackle Inc. had the following results for 2011:
Beginning inventory$ 35,000
Ending inventory50,000
Cost of goods sold375,000
Beginning accounts receivable90,000
Ending accounts receivable82,000
Net credit sales825,000
Calculate:
a. inventory turnover
b. accounts receivable turnover
c. day's sales in receivables
108) The following balance sheet dated December 31, 2010, is available for Catchacoma Inc.
Assets
Cash$ 50,000
Marketable securities120,000
Accounts receivable250,000
Inventory150,000
Equipment300,000
Total assets$870,000
Liabilities and shareholders' equity
Accounts payable$120,000
Salary payable10,000
Bonds payable350,000
Common shares200,000
Retained earnings190,000
Total liabilities and shareholders' equity$870,000
Additional information:
? Net income for 2010 was $160,000.
? Dividends paid during 2010 amounted to $2 per share.
? No additional shares of stock were issued during the year.
? The shares were issued for $5 each
? The price/earnings ratio was 20.
Calculate for the year ended December 31, 2010:
a. current ratio
b. acid-test ratio
c. debt ratio
d. market price per share
e. dividend yield
109) The current ratio and the acid-test ratio measure a company's ability to pay current liabilities. State how each ratio is calculated and what it does to help in financial statement analysis.