Reference no: EM132203918
Consider the following financial statement data:
Balance Sheet
Cash $ 20
Accounts receivable 20
Merchandise inventory 40
Plant, at carrying amount 140
$220
Accounts payable $ 20
Non-current borrowings 60
Common shares (8 shares issued) 80
Retained earnings 60
$220
Income Statement
Sales $100
Cost of goods sold 50
Gross profit 50
Operating expenses 14
Income from operations 36
Less: Interest 6
Income before income taxes 30
Less: Income taxes 10
Net income $ 20
Assume that the average of all balance sheet items is equal to the year-end figure and that all sales are on credit.
a. Calculate the following ratios:
i. Return on total assets (assume interest has been paid)
ii. Return on shareholders' equity
iii. Times interest earned ratio
iv. Earnings per share
v. Number of days of sales in inventory
vi. Accounts receivable collection period
vii. Sales to total assets ratio
viii. Current ratio
ix. Acid-test ratio
x. Debt to shareholders' equity ratio.
b. Which of these ratios are measures of liquidity?
|
Identify variables related to your area of study
: For this assignment, you need to identify 2 variables related to your area of study then find at least 3 scholarly articles that used
|
|
What is the size of the equal installments
: A loan of ?$1439 borrowed today is to be repaid in three equal installments due in one year?, four ?years, and five ?years, respectively.
|
|
What is the amount of the final? payment
: If? 9% interest is? allowed, and the focal date is five months from? now, what is the amount of the final? payment?
|
|
What should be the price of portage bay? stock
: If Portage? Bay's equity cost of capital is 9% and it has 8 million shares? outstanding, what should be the price of Portage Bay? stock?
|
|
Consider the financial statement data
: Consider the following financial statement data:
|
|
What is the net amount of cash received or provided
: What is the net amount of cash received or provided by during 2012 for investing activities, financing activities, and operating activities?
|
|
What is the cost of goods sold
: What is the Cost of Goods Sold and the Gross Margin under the FIFO and LIFO methods?
|
|
What is the required adjusting entry at december
: The monthly magazines were delivered in June through December. What is the required adjusting entry at December 31, 2012?
|
|
Identify economic legal and regulatory forces and trends
: Apply - Internal and External Environmental Analysis - Identify economic, legal, and regulatory forces and trends
|