The Following Information Is from Omega Corporation's Balance Sheets as of December

question 89

Essay

The following information is from Omega Corporation's balance sheets as of December 31,2013 and 2014 and its income statement for 2014:
From the above information,calculate the following ratios for 2014:
(a) Inventory turnover.
(b) Accounts receivable turnover.
(c) Return on total assets.
(d) Times interest earned.
(e) Total asset turnover.

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Definitions:

Portfolio

A diversified collection of investments held by an individual or institution, including stocks, bonds, real estate, and other assets.

Cyclical Stock

A stock that's price is affected by macroeconomic or systematic changes in the overall economy, typically performing well during economic expansions and poorly during contractions.

Boom Economy

A period characterized by rapid economic growth, significant increases in jobs, and elevated consumer spending.

Recessionary Period

A period of economic decline during which trade and industrial activity are reduced, typically recognized by a fall in GDP in two successive quarters.