The Following Information Is Taken from the Financial Statements of B.Darin

question 133

Essay

The following information is taken from the financial statements of B.Darin Company:
$\begin{array} { l r } \text { Net sales revenue } & \$ 900,000 \\\text { Expenses } & 600,000 \\\text { Net income } & 300,000 \\\text { Net cash from operations } & 290,000 \\\text { Assets, end of current year } & 600,000 \\\text { Liabilitics, end of current year } & 100,000 \\\text { Stockholders' equity, end of current year } & 500,000 \\\text { Assets, end of previous year } & 590,000 \\\text { Stockholders' equity, end of previous year } & 490,000\end{array}$
Expenses include interest of $10,000 and income tax of $90,000.There was an average of 40,000 shares of common stock outstanding during the year and the market price of the stock is $15 per share at the end of the year.There was no preferred stock outstanding during the year.
Required:
Calculate the following ratios for the current year:
Part a.Fixed asset turnover
Part b.Return on equity (ROE)
Part c.Earnings per share (EPS)
Part d.Times interest earned
Part e.Price/Earnings ratio
Part f.Debt-to-assets ratio
Part g.Net profit margin

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Definitions:

Sequence

A specific order in which events, movements, or things follow each other.

Chronological Context

The sequence of events in time, providing a framework for understanding the historical or temporal setting.

Compliment

A polite expression of praise or admiration.

Deductive

Pertaining to the logical process of reasoning from one or more statements (premises) to reach a logically certain conclusion.