Use the Following Information to Calculate the Ratios Requested Below

question 119

Essay

Use the following information to calculate the ratios requested below. Round answers to two decimal places. Show your work.
$$\begin{array} { l r } \text { Average total assets } & \$ 85,000 \\\text { Current assets, December } 31 & 24,000 \\\text { Current liabilities, December } 31 & 7,500 \\\text { Dividends paid } & 5,250 \\\text { Stockholders' equity, December } 31 & 50,000 \\\text { Net sales } & 212,500 \\\text { Total liabilities, December } 31 & 35,000 \\\text { Market price, December } 31 \text {, on } 2,500 \text { shares } & \$ 50 / \text { share }\end{array}$$ $$\begin{array} { | l | l | l | l | l } \hline \text { Dividendsyield } && \text { Debt to equityratid } & \\\hline \text { Curtantratid } && \text { Amet turnever } & \\\hline & & & &\end{array}$$

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Definitions:

Par Value

A nominal value assigned to a share of stock in the corporate charter, not necessarily related to its market value.

Acquisition Method

The accounting method used in consolidating the financial statements of a parent company and its subsidiaries, wherein the assets and liabilities of the subsidiary are measured at their fair values at the acquisition date.

Business Combination

A transaction or other event in which an acquirer gains control over one or more businesses.

Net Assets

The total assets of a company minus its total liabilities, representing the company's equity value.