Financial Ratios
Shown Below Are Some Key Figures from the Balance

question 34

Essay

Financial ratios
Shown below are some key figures from the balance sheets of Minuteman Gas Company for two successive years:
$$\begin{array} { | l | r | r | } \hline & \text { December } 31,2010 & \text { December } 31,2009 \\\hline \text { Total assets (of which } 30 \% \text { are current) } & \$ 2,820,000 & \$ 2,220,000 \\\hline \text { Current liabilities } & \$ 336,000 & \$ 372,000 \\\hline \text { Bonds payable (long term) } & \$ 1,080,000 & \$ 840,000 \\\hline \text { Capital stock, } \$ 6 \text { par value } & \$ 660,000 & 4660,000 \\\hline \text { Retained Earnings } & \$ 828,000 & \$ 480,000 \\\hline\end{array}$$
Dividends of $96,000 were declared and paid in 2010. Compute the following:
$\begin{array}{|l|l|l|}\hline \text { Current ratio at end of } 2009 &\quad\quad\quad&\quad\quad\\\hline \text { Current ratio at end of } 2010 \\\hline \text { Working capital at end of } 2009 \\\hline \text { Working capital at end of } 2010 \\\hline \text { Debt ratio at end of } 2009 \\\hline \text { Debt ratio at end of } 2010 \\\hline \text { Earnings per share for } 2010 \\\hline\end{array}$

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Definitions:

Granting Claims

The process of acknowledging or approving requests, rights, or privileges, often in legal or administrative contexts.

Company Fault

A situation where a business is responsible for a mistake, problem, or issue, often leading to negative consequences.

Response Correct

An accurate or appropriate reply to a question or situation.

Personal Responsibility

The obligation to hold oneself accountable for one's own actions, decisions, and their consequences.