177.Use the balance sheets of Glover shown below to calculate the following ratios for 2016 (round to the hundredths):
(a) Current ratio.
(b) Acid-test ratio.
(c) Debt ratio.
(d) Equity ratio.
Glover Company
Balance Sheets
December 31, 2016 and 2015
20162015
Assets:
Cash$43,000$22,000
Accounts receivable38,00042,000
Merchandise inventory61,00052,000
Prepaid insurance6,0009,000
Long-term investments49,00020,000
Plant assets (net) 218,000 218,000
Total assets $415,000 $363,000
Liabilities and Equity:
Current liabilities$62,000$75,000
Long-term liabilities45,00036,000
Common stock150,000150,000
Retained earnings 158,000 102,000
Total liabilities and equity $415,000 $363,000
178.The following information is available for the Starr Corporation:
Sales$750,000
Cost of goods sold450,000
Gross profit300,000
Operating income85,000
Net income42,000
Inventory, beginning-year71,200
Inventory, end-of-year48,800
Calculate the company's inventory turnover and its days' sales in inventory.
179.The following current year information is available from a manufacturing company:
Sales$740,000
Gross profit on sales276,000
Operating income64,000
Income before taxes44,000
Net income33,600
Accounts Receivable, beginning-year 58,000
Accounts Receivable, end-of-year72,000
Calculate the company's accounts receivable turnover and its days' sales uncollected.
180.Information from a manufacturing company's current year income statement follows. Calculate the company's (a) profit margin ratio, (b) gross margin ratio, and (c) times interest earned.
Sales$850,000
Cost of goods sold 455,000
Gross profit$395,000
Operating expenses 260,000
Operating income$135,000
Interest expense 32,000
Income before taxes$103,000
Income taxes expense 12,400
Net income $90,600
181.A company reported net income of $78,000 and had 15,000 common shares outstanding throughout the current year. At year-end, the price per share of the company's stock was $49.40. What is the company's year-end price-earnings ratio?