The Following Information Is Available for the Oil Creek Corporation

question 119

Essay

The following information is available for the Oil Creek Corporation.
$$\begin{array} { l l } \text { Accounts Receivable } & \$ 19,000 \\\text { Sales } & \$ 195,000 \\\text { Current assets } & \$ 36,000 \\\text { Total assets } & \$ 147,000 \\\text { Long term debt } & \$ 48,000 \\\text { Current liabilities } & \$ 41,000 \\\text { Profit margin } & 6 \% \\\text { Number of shares outstanding } & 15,000 \\\text { Current stock price per share } & \$ 14,43 \\\hline\end{array}$$ (a) What is the current ratio?
(b) What is the net working capital?
(c) What is the net income?
(d) What is the return on equity?
(e) What is the total asset turnover?
(f) What is the debt-equity ratio?
(g) What is the accounts receivable turnover?
(h) What is the earnings per share (EPS)?
(i) What is the price to earnings (P/E) ratio?

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Definitions:

Land Improvements

Upgrades made to land such as landscaping, irrigation systems, and construction of pathways that enhance its value and utility.

Buildings

Structures constructed on land that serve various purposes, such as commercial, residential, or industrial activities, often considered as long-term assets in financial accounting.

Land

A natural resource concerning the solid surface of the earth, which is not subject to depreciation.

Machinery and Equipment

Long-term assets used in the operations of a business, not intended for sale, ranging from production machinery to office equipment.