Use the Following Information from the Current Year Financial Statements

question 207

Essay

Use the following information from the current year financial statements of a company to calculate the ratios below:
(a) Current ratio.
(b) Accounts receivable turnover. (Assume the prior year's accounts receivable balance was $100,000.)
(c) Days' sales uncollected.
(d) Inventory turnover. (Assume the prior year's inventory was $50,200.)
(e) Times interest earned ratio.
(f) Return on common stockholders' equity. (Assume the prior year's common stock balance was $480,000 and the retained earnings balance was $128,000.)
(g) Earnings per share (assuming the corporation only has common stock outstanding).
(h) Price earnings ratio. (Assume the company's stock is selling for $26 per share.)
(i) Divided yield ratio. (Assume that the company paid $1.25 per share in cash dividends.)

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Definitions:

Personal Growth

The process of developing self-awareness, honing personal skills, and improving life quality through intentional efforts.

Immune System

The complex network of cells, tissues, and organs that work together to defend the body against attacks by foreign invaders, such as bacteria, viruses, and cancer cells.

Red Blood Cells

Blood cells responsible for carrying oxygen from the lungs to the body and carbon dioxide from the body to the lungs.

Antibodies

Proteins produced by the immune system to identify and neutralize foreign objects such as bacteria and viruses.