Use the Following Information to Calculate the Ratios Requested Below

question 40

Essay

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

$\begin{array}{lr}\text { Average inventory } &\$ 4,500 \\\text { Average total assets } & 50,000 \\\text { Cost of goods sold } & 15,750 \\\text { Income taxes expense } & 2,700 \\\text { Interest expense } & 1,500 \\\text { Net income } & 3,200 \\\text { Net sales } & 30,000 \\\text { Market price, December 31, on 2,000 shares } & \$ 48 / \text { share }\end{array}$

$$\begin{array} { | l | l | l | l| } \hline \text { Return an assets } &\quad & \text { Inventary turnover } &\quad \\\hline \text { Price/earning } ( \mathrm { P } / \mathrm { E } ) \text { ratio } & & \text { Interest coverage ratio } & \\\hline\end{array}$$

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Definitions:

Oxygen Constraint

A limitation in a process or environment where the availability of oxygen is a critical factor.

Disinfectants

Chemical agents used to destroy or inhibit the growth of harmful organisms, especially in cleaning products.

Hydrogen

The lightest and most abundant element in the universe, consisting of one proton and one electron, widely used in chemical processes and as a potential clean fuel source.

Water

A colorless, tasteless, and odorless substance in its pure form, essential for all known forms of life.