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:

Tying Arrangement

A sales agreement in which the sale of one product is dependent on the buyer purchasing another product.

Competitive Harm

Refers to damage or disadvantage caused to a competitor or the competitive landscape by anti-competitive practices or behaviors.

Per Se Illegal

A term used in antitrust law referring to certain business practices that are considered illegal by their very nature, without the need for further examination of their effects.

Exclusive Dealing

An agreement where a seller agrees to sell, and a buyer agrees to buy, products or services exclusively from each other.