190.A corporation reports the following year-end balance sheet data. Calculate the following ratios:
(a) working capital
(b) acid-test ratio
(c) current ratio
(d) debt ratio
(e) equity ratio
(f) debt-to-equity ratio
Cash$50,000Current liabilities$64,000
Accounts receivable35,000Long-term liabilities72,000
Inventory60,000Common stock100,000
Equipment 140,000Retained earnings 49,000
Total assets $285,000 Total liabilities and equity $285,000
191.Selected balances from a company's financial statements are shown below. Calculate the following ratios for 2016:
(a) accounts receivable turnover
(b) inventory turnover
(c) days' sales uncollected
(d) days' sales in inventory
(e) profit margin.
(f) return on total assets.
Dec. 31,
2016Dec. 31,
2015For the
Year 2016
Accounts receivable$27,000$24,000
Merchandise inventory25,00020,000
Total assets296,000244,000
Accounts payable26,00032,000
Salaries payable3,0004,400
Sales (all on credit) $312,000
Cost of goods sold 165,600
Salaries expense 48,000
Other expenses 75,000
Net income 24,000
192.The following selected financial information for a company was reported for the current year end. Calculate the following company ratios:
(a) Accounts receivable turnover.
(b) Inventory turnover.
(c) Days' sales uncollected
Accounts receivable, beginning-year$170,000
Accounts receivable, year-end190,000
Merchandise inventory, beginning-year80,000
Merchandise inventory, year-end60,000
Cost of goods sold580,000
Credit sales1,000,000
193.Selected current year end financial information for a company is presented below. Calculate the following company ratios:
(a) Profit margin.
(b) Total asset turnover.
(c) Return on total assets.
(d) Return on common stockholders' equity (assume the company has no preferred stock).
Net income$325,000
Net sales4,700,000
Total liabilities, beginning-year550,000
Total liabilities, end-of-year530,000
Total stockholders' equity, beginning-year760,000
Total stockholders' equity, end-of-year745,000
194.Use the following information from the current year financial statements of a company to calculate the ratios below:
(a) Current ratio.
(b) Accounts receivable turnover. (Assume the prior year's accounts receivable balance was $100,000.)
(c) Days' sales uncollected.
(d) Inventory turnover. (Assume the prior year's inventory was $50,200.)
(e) Times interest earned ratio.
(f) Return on common stockholders' equity. (Assume the prior year's common stock balance was $480,000 and the retained earnings balance was $128,000.)
(g) Earnings per share (assuming the corporation has a simple capital structure, with only common stock outstanding).
(h) Price earnings ratio. (Assume the company's stock is selling for $26 per share.)
(i) Divided yield ratio. (Assume that the company paid $1.25 per share in cash dividends.)
Income statement data:
Sales (all on credit)$1,075,000
Cost of goods sold 575,000
Gross profit on sales $500,000
Operating expenses 305,000
Operating income$195,000
Interest expense 20,400
Income before taxes$174,600
Income taxes 74,000
Net income $100,600
Balance sheet data:
Cash$38,400
Accounts receivable120,000
Inventory56,700
Prepaid Expenses 24,000
Total current assets$239,100
Total plant assets 708,900
Total assets $948,000
Accounts payable$91,200
Interest payable4,800
Long-term liabilities 204,000
Total liabilities$300,000
Common stock, $10 par480,000
Retained earnings 168,000
Total liabilities and equity $948,000