Use the Following Information to Calculate the Ratios Requested Below

question 99

Essay

Use the following information to calculate the ratios requested below.Round answers to two decimal places.Show your work.

$$\begin{array} { l r } \text { Average inventory } & \$ 6,000 \\\text { Average total assets } & 80,000 \\\text { Cost of goods sold } & 21,000 \\\text { Income taxes expense } & 3,600 \\\text { Interest expense } & 2,000 \\\text { Net income } & 4,800 \\\text { Net sales } & 40,000 \\\text { Market price, December 31, on 2,000 shares } & \$ 36 / \text { share }\end{array}$$

$$\begin{array} { | l | l | l | l | } \hline \text { Return an assets } && \text { Inventary turaver } & \\\hline \text { Priceleanings (P/E) ratio } & & \text { Interest coverage ratid } & \\\hline\end{array}$$

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Definitions:

Financial Markets

Facilities or platforms that support the trading of financial instruments including stocks, bonds, and currencies among investors.

Long-Term Debt

Debt obligations of a company that are due more than one year in the future, including bonds, leases, and loan agreements.

Equity Securities

Shares of stock that represent ownership interest in a company, potentially providing voting rights and dividends to the shareholder.

Money Markets

Financial markets where short-term debt securities are bought and sold.