188. The current year-end balance sheet data for a company are shown below. Calculate the company's:
(a) working capital
(b) current ratio
(c) acid-test ratio.
Assets:
Cash...............................$38,000
Marketable securities................... 45,000
Accounts receivable (net)................127,500
Merchandise inventory..................149,500
Long-term investments..................135,000
Plant assets (net)......................517,500
Total assets..........................$ 1,012,500
Liabilities and equity:
Accounts payable......................$148,700
Accrued liabilities.....................90,000
Notes payable (secured by plant assets) 254,800
Common stock ($12 par).................180,000
Contributed capital in excess of par.........135,000
Retained earnings......................204,000
Total liabilities and equity................$1,012,500
189. The comparative income statements for Silverlight Company are shown below. Calculate the following ratios for 2016:
(a) profit margin
(b) gross margin
(c) times interest earned.
SilverlightCompany
Income Statements
For Years Ended December 31,
|
|
2016
|
2015
|
Net sales.........................
|
$720,000
|
$607,500
|
Cost of goods sold...................
|
450,000
|
382,700
|
Gross profit.......................
|
$270,000
|
$224,800
|
Operating expense..................
|
168,500
|
134,900
|
Income from operations...............
|
$101,500
|
$ 89,900
|
Interest expense....................
|
22,300
|
11,200
|
Income before taxes.................
|
$ 79,200
|
$ 78,700
|
Income taxes......................
|
28,000
|
27,000
|
Net income.......................
|
$ 51,200
|
$ 51,700
|
|
|
|
|
|
|