Use the Following Information to Calculate the Ratios Requested Below

question 48

Essay

Use the following information to calculate the ratios requested below.Round answers to two decimal places.Show your work. $$\begin{array} { l r } \text { Average total assets } & \$ 85,000 \\\text { Current assets, December } 31 & 24,000 \\\text { Current liabilities, December } 31 & 7,500 \\\text { Dividends paid } & 5,250 \\\text { Stockholders' equity, December } 31 & 50,000 \\\text { Net sales } & 212,500 \\\text { Total liabilities, December } 31 & 35,000 \\\text { Market price, December } 31 \text {, on } 2,500 \text { shares } & \$ 50 / \text { share }\end{array}$$
$$\begin{array} { | l | l | l | l } \hline \text { Dividends yield } & \text { Debt to equity ratio } & \\\hline \text { Curtent ratio } & \text { Asset tumuver } & \\\hline\end{array}$$

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Definitions:

Reversing Entry

An accounting entry that is made at the beginning of an accounting period to reverse or cancel out a journal entry made at the end of the previous accounting period.

Interest Accrued

Interest that has been incurred but not yet paid, representing a liability on the balance sheet until it is paid.

Accrued Interest

The interest that has accumulated on a bond or loan but has not yet been paid out to the lender or bondholder.