The Following Data Are Taken from the Financial Statements of Rosen

question 33

Essay

The following data are taken from the financial statements of Rosen, Inc. as of the end of the year 2014. The data are in alphabetical order. $$\begin{array} { l r l r } \text { Accounts payable } & \$ 28,000 & \text { Net income } & \$ 48,000 \\\text { Accounts receivable } & 66,000 & \text { Other current liabilities } & 17,000 \\\text { Cash } & 24,000 & \text { Salaries and wages payable } & 5,000 \\\text { Gross profit } & 160,000 & \text { Total assets } & 250,000 \\\text { Income before income taxes } & 54,000 & \text { Total liabilities } & 175,000\end{array}$$ Additional information: The average common shares outstanding during the year was 40,000.
Instructions
Compute the following:
(a) Current ratio. (c) Earnings per share.
(b) Working capital. (d) Debts to assets ratio.

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Definitions:

CDs

Compact Discs, a digital optical disc data storage format that was widely used for storing music and other data.

Income

The financial gain received by an individual or entity, typically through wages, investments, or other sources, over a specific period of time.

Budget Constraint

A budget constraint represents the limitations on the spending choices of an individual or organization, determined by their income and the prices of goods and services.

Bell Peppers

Edible fruits of plants in the Capsicum genus, often used as vegetables in cooking for their mild flavor and vibrant colors.