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.

---

Definitions:

Null Hypothesis

A default hypothesis that there is no significant effect or difference for a particular population or phenomenon.

Significance Level

The probability of rejecting the null hypothesis in a statistical test when it is actually true, denoted by alpha.

Face-to-face

A form of communication or interaction that takes place in person as opposed to through electronic means.

T Procedure

A statistical analysis methodology used to determine the significance of the difference between two sample means, based on the t-distribution.