The Following Information Has Been Taken from the Financial Statements

question 167

Essay

The following information has been taken from the financial statements of Kane Corporation.Kane Corporation has only issued common shares.
$\begin{array}{ll}\text { Net income } & \$ 60,000 \\\text { Total assets, January } 1,2017 & 500,000 \\\text { Total liabilities, December } 31,2017 & 175,000 \\\text { Net sales } & 900,000 \\\text { Interest expense } & 20,000\\\text { Current assets, December } 31,2017 & 175,000 \\\text { Current liabilities, December } 31,2017 & 75,000 \\\text { Income tax expense } & 25,000 \\\text { Total assets, December } 31,2017 & 575,000 \\\text { Shareholders' equity, January } 1,2017 & 300,000 \\\text { Shareholders' equity, December 31, 2017 } & 400,000 \\\text { Common shares outstanding for } 2017 & 100,000\end{array}$ Use the given data for Kane Corporation to calculate the following ratios for 2017:
a_rate of return on total assets
b_rate of return on common shareholders' equity
c_rate of return on net sales
d_times-interest-earned ratio
e_debt ratio,December 31,2017
f_current ratio,December 31,2017
g_earnings per common share

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Definitions:

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An assessment or method used to determine the amount of information or skills that have been remembered or held onto over time.