The Following Information Is from Omega Corporation's Balance Sheets as of December

question 5

Essay

The following information is from Omega Corporation's balance sheets as of December 31,2013 and 2014 and its income statement for 2014:
$\begin{array}{|l|r|r|}\hline&2014&2013\\\hline \text { Cash } & \$ 18,000 & \$ 22,000 \\\hline \text { Marketable securities } & 25,000 & 0 \\\hline \text { Accounts receivable } & 38,000 & 42,000 \\\hline \text { Inventory } & 61,000 & 52,000 \\\hline \text { Prepaid insurance } & 6,000 & 9,000 \\\hline \text { Long-term investments } & 49,000 & 20,000 \\\hline \text { Plant assets, net } & \underline{218,000} & 225,000 \\\hline \text { Total assets } & \$ 415,000 & \$ 370,000 \\\hline\\\hline \text { Net income } & \$ 62,250 \\\hline \text { Sales (all on credit) } & 305,000 \\\hline \text { Cost of goods sold } & 123,000 \\\hline \text { Interest expense } & 15,600 \\\hline \text { Income tax expense } & 27,000\\\hline \end{array}$

From the above information,calculate the following ratios for 2014:
(a)Inventory turnover.
(b)Accounts receivable turnover.
(c)Return on total assets.
(d)Times interest earned.
(e)Total asset turnover.

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