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Compute current ratio inventory turnover receivables turno
Course:- Finance Basics
Reference No.:- EM131146722




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Problem 1: 

Plastics Inc. is a company that operates in four different divisions. The following information relating to each segment is available for 2013. 

Sales revenue Cost of goods sold Operating expenses Total expenses Operating profit (loss) Identifiable assets

Bottles $ 65,000 $ 26,000 $8,000 $ 34,000 $31,000 $ 66,000 

Containers $ 95,000 $ 62,000 $ 48,000 $ 110,000 $ (15,000) $ 80,000 

Dollhouses $ 620,000 $ 353,000 $140,000 $ 493,000 $ 127,000 $ 640,000 

Silverware $18,000 $ 8,000 $ 6,500 $14,500 $3,500 $36,000 

Sales of segments Containers and Dollhouses included intersegment sales of $30,000 and $150,000, respectively.

Required 

Determine which of the segments are reportable based on the following: 

Revenue Test

Operating profit (loss) test 

Identifiable assets test 

Problem 2: 

The following information pertains to Walrus Inc.

Cash $60,000 

Accounts receivable 170,000

Inventory 100,000

Plant assets (net) 582,000

Total assets $912,000 

Accounts payable $110,000 

Accrued taxes and expenses payable 42,000

Long-term debt 120,000

Common stock ($10 par) 260,000

Paid-in capital in excess of par 50,000

Retained earnings 330,000

Total equities $912,000 

Net sales (all on credit) $2,000,000 

Cost of goods sold 1,400,000

Net income 120,000

Required:

Compute the following:

(Ignore Avg for balance sheet accounts)

(a) Current ratio

(b) Inventory turnover

(c) Receivables turnover

(d) Book value per share

(e) Earnings per share

(f) Debt to total assets

(g) Profit margin on sales

(h) Return on common stock equity




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