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:

Horizontal-Vertical Illusion

A visual illusion where horizontal segments appear longer than vertical segments of the same length due to perceptual biases.

Relative Height

A principle in visual perception where objects positioned higher in the visual field are perceived as more distant.

Linear Perspective

A technique in art and photography that creates the illusion of depth on a flat surface by converging lines at a single point.

Moon Illusion

A perceptual phenomenon in which the Moon appears larger near the horizon than it does while higher up in the sky.