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:

Bad Cholesterol

Low-density lipoprotein (LDL) cholesterol, often referred to as "bad" because high levels can lead to plaque buildup in arteries and heart disease.

Liver

The largest gland in the body, located in the upper right quadrant of the abdomen beneath the diaphragm.

Total Cholesterol

The sum of all types of cholesterol in the blood, including low-density lipoprotein (LDL), high-density lipoprotein (HDL), and triglycerides.

Fasting

Voluntarily abstaining from food and/or drink for a specific period for health, religious, or other reasons.