77. The acid-test ratio is: a.0.25. b.0.88. c.1.17. d.1.58. 78. The debt to equity ratio is: a.0.33. b.0.77. c.1.17. d.1.30. Use the following information to answer the next...







77. The acid-test ratio is:



a.0.25.



b.0.88.



c.1.17.



d.1.58.







78. The debt to equity ratio is:



a.0.33.



b.0.77.



c.1.17.



d.1.30.





Use the following information to answer the next two questions:



Recent financial statement data for Harmony Health Foods (HHF) Inc. is shown below.








































































Current liabilities




$ 180







Income before interest and taxes




$ 125




10% Bonds, long-term




360







Interest expense




36




Total liabilities




540







Income before tax




89




Stockholders’ equity










Income tax




27




Common stock




200







Net income




$ 62




Retained earnings




280













Total stockholders’ equity




480













Total liabilities and equity




$1,020






























79. HHF's debt to equity ratio is:



a.0.75.



b.1.13.



c.0.38.



d.1.80.







80. HHF's times interest earned ratio is:



a.3.47.



b.1.72.



c.2.47.



d.10.0.









Excerpts from Stealth Company's December 31, 2015 and 2014, financial statements are presented below:


















































2015




2014




Accounts receivable




$ 40,000




$ 36,000




Inventory




28,000




35,000




Net sales




190,000




186,000




Cost of goods sold




114,000




108,000




Total assets




425,000




405,000




Total stockholders’ equity




240,000




225,000




Net income




32,500




28,000








81. Stealth Company’s 2015 receivables turnover ratio is:



a.2.85.



b.4.70.



c.5.00.



d.10.63.







82. Stealth Company’s 2015 average collection period is:



a.73 days.



b.104 days.



c.109 days.



d.128 days.







83. Stealth Company’s 2015 inventory turnover is:



a.3.62 times.



b.3.96 times.



c.4.07 times.



d.6.03 times.







84. Stealth Company’s 2015 average days in inventory is:



a.60.5 days.



b.92.2 days.



c.100.8 days.



d.89.7 days.







85. Stealth Company’s 2015 debt to equity ratio is:



a.77.1%.



b.80.0%.



c.40.0%.



d.60.0%.







86. Stealth Company’s 2015 gross profit ratio is:



a.77.1%.



b.80.0%.



c.40.0%.



d.60.0%.







May 15, 2022
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