Use the Following Information to Calculate the Ratios Requested Below

question 152

Essay

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

$$\begin{array} { l r } \text { Average inventory } & \$ 6,000 \\\text { Average total assets } & 80,000 \\\text { Cost of goods sold } & 21,000 \\\text { Income taxes expense } & 3,600 \\\text { Interest expense } & 2,000 \\\text { Net income } & 4,800 \\\text { Net sales } & 40,000 \\\text { Market price, December 31, on 2,000 shares } & \$ 36 / \text { share }\end{array}$$
$\begin{array}{|l|l|l|l|}\hline \text { Return on assets } && \text { Inventory turnover } & \\\hline \text { Price/earnings }(\mathrm{P} / \mathrm{E}) \text { ratio } && \text { Interest coverage ratio } & \\\hline\end{array}$

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Definitions:

External Sources

These are the outside entities or information not within the organization that can influence or provide data for business decisions, including market trends and competitor analysis.

Consumer Decision Process

A series of steps that consumers go through before, during, and after making purchases, including problem recognition, information search, evaluation of alternatives, purchase, and post-purchase behavior.

Maslow's Hierarchy

A theory in psychology proposing that human needs are arranged in a hierarchy, from physical survival to self-actualization.

Safety

The state of being safeguarded against potential harm or hazards.