Question

Following is the balance sheet of Finch Company for 2018: FINCH COMPANY Balance sheet Assets Cash Marketable securities Accounts receivable Inventory Property and equipment Accumulated depreciation Total assets Liabilities and Stockholders' Equity Accounts payable Current notes payable Mortgage payable Bonds payable Common stock Retained earnings Total liabilities and stockholders' equity $ 14,550 7,900 12,800 11,200 167,500 (12,900) $ 201,050 8.690 3,000 4,300 21.360 113,700 50,000 $ 201,050 The average number of common stock shares outstanding during 2018 was 860 shares. Net income for the year was $14,800.

Answer 1

per share answers current ratio earning per share quick (acid ) ratio return on investment return on equity debt to equity ratio 2018 3.97 17.21 3.02 7.36 9.04 22.82 current ratio= current assets/ current liabilities return on investment =net income / invested assets *100 quick ratio= (current assets - inventory /current liabilities return on equity = net income /equity *100 EPS = net income /outstanding shares debt to equity = total liabilities/ total equity*100

outstanding shares net income 860 14800 14550 7900 12800 cash marketable securities accounts receivables inventory total current assets property and equipment accumulated depreciation total assets 11200 46450 167500 - 12900 201050 8690 accounts payable current notes payable total current liabilities mortagage payable bonds payable total long term liabilities total liabilities common stock retained earnings total shareholders equity total liabilities and equity 3000 11690 4300 21360 25660 37350 113700 50000 163700 201050