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Mince Company's condensed financial statements appear below:
Mince Company
Balance Sheet
December 31
Cash and marketable securities
$100,000
Accounts receivable
120,000
Inventories
170,000
Prepaid expenses
10,000
Plant and equipment (net)
200,000
Total assets
$600,000
Accounts payable
$150,000
Taxes payable
45,000
Interest payable
5,000
Long-term bonds payable
100,000
Common stock (no par, 20,000 shares issued and outstanding)
140,000
Retained earnings
160,000
Total liabilities and stockholders' equity
Income Statement
For the Year Ended December 31
Sales (all on account)
$2,700,000
Cost of goods sold
1,680,000
Gross margin
1,020,000
Operating expenses
790,000
Net operating income
230,000
Interest expense
20,000
Net income before taxes
210,000
Income taxes (30%)
63,000
Net income
$ 147,000
There was no change in the number of common shares outstanding during the year.
Required:
Determine the following:
a. Working capital.
b. Acid-test (quick) ratio.
c. Current ratio.
d. Earnings per share of common stock.
e. Book value per share.
f. Times interest earned.
g. Debt-to-equity ratio.
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