Reference no: EM13490594

From the following information, compute the ratios indicated and place the proper numbers in the spaces provided. Assume the average for the year is the same as the ending balances for the balance sheet accounts. Round answers to one decimal place, and show your work. 

 

Anders Corporation 

Balance Sheet 

December 31, 20x5 

Assets 

Cash $ 30,000 

Marketable securities 20,000 

Accounts receivable (net) 40,000 

Inventory 60,000 

Prepaid expenses 16,000 

Property, plant, and equipment 234,000 

Total assets $400,000 

 

Liabilities and Stockholders'' Equity 

Current liabilities $ 60,000 

Long-term liabilities 100,000 

Stockholders'' equity 240,000 

Total liabilities and stockholders'' equity $400,000 

 

Anders Corporation 

Income Statement 

For the Year Ended December 31, 20x5 

Net sales $160,000 

Cost of goods sold 120,000 

Gross margin $ 40,000 

Operating expenses

Selling and administrative expenses $ 16,000

Interest expense 8,000

Income taxes expense 4,000 28,000 

Net income $ 12,000 

 

Anders had 4,000 shares of common stock issued and outstanding. The market price of common stock at year end was $15.00 per share. Dividends paid in 20x5 were $0.60 per share. 

 

Current ratio 6.7 

Asset turnover .4 

Quick ratio

1.5 Return on assets .03= 3% 

Receivable turnover

4 Return on equity .1 

Days'' sales uncollected 91.25 

Debt to equity ratio .7 

Inventory turnover

2 Interest coverage ratio 3.00 

Profit margin .075 

Days'' inventory on hand 182.5 

Dividend yield

.04 Price/earnings (P/E) ratio