Use the Following Information to Calculate the Ratios Requested Below

question 57

Essay

Use the following information to calculate the ratios requested below. Round answers to two decimal places. Show your work.
$\begin{array}{c}\begin{array}{lll}\text{Average inventory}\\\text{Average total assets}\\\text{Cost of goods sold}\\\text{Income taxes expense}\\\text{Interest expense}\\\text{Net income}\\\text{Net sales}\\\text{Market price, December 31 , on 2,000 shares}\end{array}\begin{array}{lll}&&\end{array}\begin{array}{r}\$ 4,500\\50,000\\15,750\\2,700\\1,500\\3,200\\30,000\\\$48/share\end{array}\end{array}$ $\begin{array}{|l|l|l|l|}\hline\text { Return on assets } & & \text { Inventory turnover }& \\\hline \text { Price/earings }(\mathrm{P} / \mathrm{E}) \text { ratio } & & \text { Interest coverage ratio }& \\\hline\end{array}$

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Definitions:

Standard Quantity

The benchmark or predetermined amount of materials expected to be used in the production of a good or service.

Actual Materials

The physical and actual quantities of materials used in the production process.

Standard Price

A predetermined cost assigned to materials, labor, and overhead, used in budgeting and variance analysis.

Actual Output

Actual output refers to the total amount of products or services produced by a company or sector in a given period.