Use the Following Information to Calculate the Ratios Requested Below

question 161

Essay

Use the following information to calculate the ratios requested below. Round answers to two decimal places. Show your work.
$$\begin{array} { l r } \text { Average total assets } & \$ 112,500 \\\text { Current assets, December } 31 & 32,000 \\\text { Current liabilities, December } 31 & 10,000 \\\text { Dividends paid } & 7,000 \\\text { Stockhol ders' equity, December } 31 & 62,500 \\\text { Net sales } & 270,000 \\\text { Total liabilities, December 31 } & 50,000 \\\text { Market price, December 31, on 2,000 shares } & \$ 70 / \text { share }\end{array}$$ $$\begin{array} { | l | l | l | l | l } \hline \text { Dividendsyield } & \text { Debt to equityratid } & \\\hline \text { Curtantratid } & \text { Amet turnever } & \\\hline & & &\end{array}$$

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Definitions:

Straight-Line Depreciation

A strategy for apportioning the cost of a concrete asset over its effective life in equal yearly installments.

Net Present Value

A financial metric that calculates the present value of all cash flows (both incoming and outgoing) expected from an investment, adjusted for time and interest.

After-Tax Net

The amount of money left after all applicable taxes have been deducted from gross income or profit.

Cash Inflow

The total amount of money being transferred into a business, project, or financial product during a specific period, often resulting from sales, financing, or investments.