Question

Balance Sheet							Income Statement
Cash	$ 72,000		Accts & Notes Pay.		$ 432,000
A/R	439,000		Accruals		170,000
Inventories	894,000		Total current liabilities		602,000
Total current assets	1,405,000
Land and bldg	238,000		Long-term debt		404,290
Machinery	132,000		Common stock		575,000
Other F.A.	61,000		Retained earnings (RE)		254,710
Total assets	$ 1,836,000		Total liab. & equity		$ 1,836,000
			RE last year		146,302

INCOME STATEMENT

Sales	$ 4,290,000
Cost of G.S.	3,580,000
Gross operating profit	710,000
Adm. & sales exp.	236,320
Depreciation	159,000
Misc. expenses	134,000
Earnings before taxes	180,680
Taxes (40%)	72,272
Net income	$     108,408
P/E ratio	5.0
No. of shares	23,000
Cash dividend	$           0.95
Tax rate	40%

Calculate the ratios. Please show your work.

Quick

Current

Inv. turn.

DSO

FA turnover

TA turnover

ROA

ROE

TD/TA

PM

EPS

Stock Price

P/E ratio

M/B

Answer 1

Quick or acid test ratio = (current assets-inventory)/current liablities

Quick or acid test ratio = (1405000-894000)/602000

Quick or acid test ratio = 0.85

Current ratio = current assets/current liablities

Current ratio = 1405000/602000

Current ratio = 2.33

Inventory turnover = COGS/inventory

Inventory turnover = 3580000/894000

Inventory turnover = 4

Receivables turnover = Credit sales/receivables

Receivables turnover = 4290000/439000

Receivables turnover = 9.77

days of sales outstanding = number of days in a year/receivables turnover

days of sales outstanding = 365/9.77

days of sales outstanding = 37.36

Please ask remaining parts seperately,