Compute the following:
(1) current ratio
(2) acid-test ratio
(3) inventory turnover
(4) Debt ratio
(5) debt-to-equity ratio
(6) times interest earned
(7) net profit margin
(8) total asset turnover
(9) return on total assets
(10) return on equity.
Homework Answers
1) Current Ratio = Current Assets/Current
Liabilities=(20000+8200+29400+7000+34150+2700)/(21500+4400+3700)=3.43
2)Acid Test Ratio =(Current Assets-Inventory)/Current Liabilities
=(20000+8200+29400+7000+2700)/(21500+4400+3700)=2.27
3)Inventory Turnover =COGS/Inventory =297450/34150 =8.71
4) Debt Ratio=Total Debt/Total Assets
=(21500+4400+3700+67400)/248750=0.39
Add Answer to:
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Current ratio
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to 1
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2.0
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current ratio, average collection period, debt ratio, net profit
margin and inventory turnover ratio.
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Financial ratios computed for Whittaker Inc. include the
following:
Current ratio
1.9
to 1
Acid-test ratio
1.4
to 1
Debt/equity ratio
2.0
to 1
Inventory turnover
3.6
times
Accounts receivable turnover
5.4
times
Times interest earned
4.60
times
Gross profit ratio
40
%
Return on investment
7.17
%
Earnings per share
$
3.40
All sales during the year were made on account. Cash
collections during the year exceeded sales by $13,000, and no
uncollectible accounts were written off.
The balance...
A.
Required:
1. Please calculate the following ratios and amounts: a) working
capital,
current ratio, acid-test ratio, cash to current liabilities ratio,
days’ sales
in receivables (based on ending accounts receivables), days’ sales
in
inventory (based on cost of goods and ending inventory), operating
cycle,
total debt to equity ratio and times interest earned. For your
calculations,
assume that a year amounts for 360 days
The balance sheet and the income statement of “Omega” Company containing data in € is...
A.
Required:
1. Please calculate the following ratios and amounts: a) working
capital,
current ratio, acid-test ratio, cash to current liabilities ratio,
days’ sales
in receivables (based on ending accounts receivables), days’ sales
in
inventory (based on cost of goods and ending inventory), operating
cycle,
total debt to equity ratio and times interest earned. For your
calculations,
assume that a year amounts for 360 days
The balance sheet and the income statement of “Omega” Company containing data in € is...
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