Question:
|
Table 1
|
|
|
|
Income Statement Balance Sheet
|
|
|
|
Sales $20,000,000 Assets:
|
|
Cost of Goods Sold 8,000,000 Cash $ 5,000,000
|
|
12,000,000 Marketable Securities 12,500,000
|
|
Selling and Administrative 1,600,000 Accounts Receivable, net 2,500,000
|
|
Depreciation 3,000,000 Inventory 30,000,000
|
|
7,400,000 Prepaid Expenses 5,000,000
|
|
Interest 2.000,000 Plant & Equipment 30,000,000
|
|
5,400,000
|
|
Taxes (40%) 2,160,000 Total Assets 85,000,000
|
|
3,240,000
|
|
Common Stock Div. 600,000 Liabilities and Equity:
|
|
$2,640,000 Accounts Payable $20,000,000
|
|
Notes Payable 5,000,000
|
|
Accrued Expenses 5,000,000
|
|
Bonds 25,000,000
|
|
Common Stock 5,000,000
|
|
Capital in Excess of Par 10,000,000
|
|
Retained Earnings 15,000,000
|
|
|
|
Total Liabilities and
|
|
Equity $85,000,000
|
Shares outstanding of common stock = 1,000,000
Market price of common stock = $18.
Use Table 1 for the following questions.
1. The Total Debt to Total Asset ratio is:
2. Return on Assets ratio is:
3. The Total Asset Turnover ratio is:
4. The Operating Profit Margin is:
5. The Average Collection Period (365 day year) is:
6. The Market to Book ratio is:
7. The Debt to Equity ratio is:
8. The Inventory Turnover ratio is:
9. The Return on Equity is: