Use the Following Information to Calculate the Ratios Requested Below

question 118

Essay

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

$\begin{array}{lr}\text { Average inventory } & 4,500 \\\text { Average total assets } & 50,000 \\\text { Cost of goods sold } & 15,750 \\\text { Income taxes expense } & 2,700 \\\text { Interest expense } & 1,500 \\\text { Net income } & 3,200 \\\text { Net sales } & 30,000 \\\text { Market price, December } 31 \text {, on } 2,000 \text { shares } & \$ 48 / \text { share }\end{array}$
$\begin{array}{|l|l|l|l|}\hline \text { Return on assets } && \text { Inventory turnover } & \\\hline \text { Price/earnings }(\mathrm{P} / \mathrm{E}) \text { ratio } && \text { Interest coverage ratio } & \\\hline\end{array}$

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Definitions:

Data

Facts and statistics collected together for analysis or used to reason or make decisions.

Weighted Mean

An average where each data point contributes proportionally to the total based on its assigned weight, reflecting its importance.

Median

A measure of central tendency that identifies the middle value in a dataset when the numbers are arranged in ascending or descending order.

Central Tendency

A measure that represents the center point or typical value of a dataset.