Use the Following Information from the Current Year Financial Statements

question 77

Essay

Use the following information from the current year financial statements of a company to calculate the ratios below:
(a) Current ratio.
(b) Accounts receivable turnover.(Assume the prior year's accounts receivable balance was $100,000.)
(c) Days' sales uncollected.
(d) Inventory turnover.(Assume the prior year's inventory was $50,200.)
(e) Times interest earned ratio.
(f) Return on common stockholders' equity.(Assume the prior year's common stock balance was $480,000 and the retained earnings balance was $128,000.)
(g) Earnings per share (assuming the corporation has a simple capital structure,with only common stock outstanding).
(h) Price earnings ratio.(Assume the company's stock is selling for $26 per share.)
(i) Divided yield ratio.(Assume that the company paid $1.25 per share in cash dividends.)

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Definitions:

Simplify

The process of reducing an expression to its most basic form or smallest possible components.

Evaluate

Finding out the numerical value associated with an expression.

Ordered Pairs

A pair of elements arranged in a specific order, typically (x, y), representing coordinates on a Cartesian plane.

Function

A mathematical relation between a set of inputs and a set of possible outputs, where each input is related to exactly one output.