Use the Following Information from the Current Year Financial Statements

question 236

Essay

Use the following information from the current year financial statements of a company to calculate the ratios below:
(a)Current ratio.
(b)Accounts receivable turnover.(Assume the prior year's accounts receivable balance was $100,000.)
(c)Days' sales uncollected.
(d)Inventory turnover.(Assume the prior year's inventory was $50,200.)
(e)Times interest earned ratio.
(f)Return on common stockholders' equity.(Assume the prior year's common stock balance was $480,000 and the retained earnings balance was $128,000.)
(g)Earnings per share (assuming the corporation has a simple capital structure,with only common stock outstanding).
(h)Price earnings ratio.(Assume the company's stock is selling for $26 per share.)
(i)Divided yield ratio.(Assume that the company paid $1.25 per share in cash dividends.)

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Definitions:

Limited Liability Partnership

A partnership in which some or all partners have limited liabilities, protecting individual partners from personal responsibility for certain partnership debts.

Personal Liability

The obligation of an individual to repay debts from personal assets, often occurring when corporate or business liability protections are not in place.

Wrongful Acts

Actions or behaviors that are illegal or morally incorrect, often leading to legal consequences or liability.

Limited Partnership

A business structure where at least one partner is liable only up to the amount of their investment, while at least one other has unlimited liability.