Financial Statements for Praeger Corporation Appear Below: Dividends

question 36

Essay

Financial statements for Praeger Corporation appear below: Dividends during Year 2 totaled $45 thousand. The market price of a share of common stock on December 31, Year 2 was $30.
Required:
Compute the following for Year 2:
a. Return on total assets.
b. Working capital.
c. Current ratio.
d. Acid-test ratio.
e. Accounts receivable turnover.
f. Average collection period.
g. Inventory turnover.
h. Average sale period.
i. Times interest earned.
j. Debt-to-equity ratio.

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Definitions:

Enter Bills

The process of recording invoices from suppliers or creditors in the accounting system, often as a precursor to issuing payments.

Receive Payments

The process of collecting money from customers or clients against invoices or bills, marking them as paid.

Pay Bills

The action of settling obligations or invoices owed to suppliers by a business, often through a specific module or function within accounting software.

Financial Institutions

Organizations that provide financial services, such as banks, credit unions, and insurance companies.