The Following Information Is Taken from the Financial Statements OfB

question 69

Essay

The following information is taken from the financial statements ofB. Darin Company:
Expenses include interest of $10,000 and income tax of $90,000. There was an average of 40,000 shares of common stock outstanding during the year and the market price of the stock is $15 per share at the end of the year. There was no preferred stock outstanding during the year.
Required:
Calculate the following ratios for the current year:
Part a. Fixed asset turnover
Part b. Return on equity (ROE)
Part c. Earnings per share (EPS)
Part d. Times interest earned
Part e. Price/Earnings ratio
Part f. Debt-to-assets ratio
Part g. Net profit margin

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