Use the Following Information to Calculate the Ratios Requested Below

question 23

Essay

Use the following information to calculate the ratios requested below. Round answers to two decimal places. Show your work.
$$\begin{array} { l r r } \text { Average inventory } & \$ 6,000 \\\text { Average total assets } & 80,000 \\\text { Cost of goods sold } & 21,000 \\\text { Income taxes expense } & 3,600 \\\text { Interest expense } & 2,000 \\\text { Net income } & 4,800 \\\text { Net sales } & 40,000 \\\text { Market price, December } 31 \text {, on } 2,000 \text { shares } & \$ 36 / \text { share }\end{array}$$ $\begin{array}{|l|l|l|l|}\hline\text { Return on assets } & & \text { Inventory turnover }& \\\hline \text { Price/earings }(\mathrm{P} / \mathrm{E}) \text { ratio } & & \text { Interest coverage ratio }& \\\hline & &&\\\hline\end{array}$

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Definitions:

Null Hypothesis

A hypothesis that assumes no effect, no difference, or no relationship between variables until evidence indicates otherwise.

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A statistic that measures the difference between observed frequencies in a sample and the frequencies that would be expected by chance.

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A statement that there is no effect or no difference, and it is the statement being tested in statistical hypothesis testing.