Financial Ratios
Given Below Are Comparative Balance Sheets and an Income

question 50

Essay

Financial ratios
Given below are comparative balance sheets and an income statement for the Excellent Corporation:
All sales were made on account. Cash dividends declared during the year totaled $58,550. Compute the following:
$$\begin{array} { | l | l| } \hline \text { (a) Average accounts receivable turnover } & \underline{\quad\quad}\text { times } \\\hline \text { (b) Average inventory turnover } & \underline{\quad\quad}\text { times } \\\hline \text { (c) Earnings per share of capital stock } & \$\underline{\quad\quad} \\\hline \text { (d) Book value per share of capital stock at year-end } &\$\underline{\quad\quad} \\\hline \text { (e) Current ratio at year-end } &\underline{\quad\quad}\text { to } 1 \\\hline \text { (f) Quick ratio at beginning of year } &\underline{\quad\quad} \text { to } 1 \\\hline \text { (g) Debt ratio at year-end } & \underline{\quad\quad}\% \\\hline \text { (h) Operating expense ratio } &\underline{\quad\quad} \% \\\hline \text { (i) Return on assets } &\underline{\quad\quad} \% \\\hline \text { (j) Return on common stockholders' equity } &\underline{\quad\quad} \% \\\hline \end{array}$$

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Definitions:

Uncertainty Avoidance

A cultural dimension that describes how societies deal with the unknown, with high avoidance indicating a preference for clear rules and low avoidance reflecting more comfort with ambiguity.

Cultural Relativism

The perspective that beliefs, morals, and ethics are relative to each individual within his or her own social context.

Society

A group of individuals involved in persistent social interaction, or a large social grouping sharing the same geographical or social territory, typically subject to the same political authority and dominant cultural expectations.

Behavioral Economics

A field of economic research that examines the effects of psychological, social, cognitive, and emotional factors on economic decisions.