Calculate the following ratios for year 2 ONLY: Current ratio Total Asset Turnov
ID: 2467028 • Letter: C
Question
Calculate the following ratios for year 2 ONLY:
Current ratio
Total Asset Turnover
Net Profit Margin (Return on Sales)
Return on Equity
Return on Assets
Inventory Turnover
Debt to Equity Ratio
Times Interest Earned (Interest Coverage ratio)
Here are the financial statements:
Our Company Our Company Our Company Income Statement Balance Sheet Statement of Cash Flows For year 2 December 31, year 2 For year 2 Sales $ 25,000.00 Assets Operating Activities: Cost of Goods Sold $ 11,000.00 Current Assets: Cash received from sales $ 27,000.00 Gross Profit $ 14,000.00 Cash $ 64,255.00 Cash paid for accounts payable $ (4,500.00) Operating Expenses: Accts. Receivable $ - Cash paid for interest $ (100.00) Salaries Expense $ 2,500.00 Supplies $ 100.00 Cash paid for taxes $ (545.00) Utilties Expense $ 275.00 Prepaid Rent $ 4,000.00 Cash paid for salaries $ (2,500.00) Supplies Expense $ 600.00 Inventory $ 3,100.00 Cash paid for utilities $ (275.00) Rent Expense $ 1,000.00 Total Current Assets $ 71,455.00 Cash paid for advertsing $ (325.00) Advertising Expense $ 325.00 Cash paid for consulting $ (250.00) Consulting Expense $ 250.00 Net Operating Activities $ 18,505.00 Depr. Expense $ 500.00 PP&E: Total Operating Expenses $ 5,450.00 Equipment $ 5,000.00 Investing Activities: Operating Income $ 8,550.00 Accum Depr $ (1,000.00) Cash paid for equipment $ - Interest Expense $ 100.00 Total PP&E $ 4,000.00 Income before taxes $ 8,450.00 Financing Activities: Income tax expense $ 845.00 Total Assets $ 75,455.00 Cash received from stock sale $ - net income $ 7,605.00 Cash paid for dividends $ - Net Financing Activities $ - EPS $ 7.61 Liabilities Current Liabilities: Net Activity/Cash flow $ 18,505.00 Accts. Payable $ 8,000.00 Beginning Balance $ 45,750.00 Our Company Interest Payable $ 100.00 Ending Balance $ 64,255.00 Statement of Owners' Equity Income Tax Payable $ 845.00 For year 2 Total Current Liabilities $ 8,945.00 LTD: Stock Notes Payable $ 2,000.00 Retained Earnings: Beginning Balance $ 1,905.00 Total Liabilities $ 10,945.00 Net Income $ 7,605.00 Dividends $ - Owners' Equity Ending Balance $ 9,510.00 Stock $ 55,000.00 Retained Earnings $ 9,510.00 Total Owners' Equity $ 9,510.00 Total Owners' Equity $ 64,510.00Explanation / Answer
Current Ratio=Current assets/Current Liabilties 71455/8945 7.99 to 1 Total Asset Turnover Ratio Net sales/Total assets 25000/75455 0.33 times Net Profit margin ratio Net Profit/Sales*100 7605/25000*100 30.42 % Return on equity Net Income./Shareholder equity 7605/64510*100 11.79 % Return on asset Net Income/Average total assets*100 7605/75455*100 10.08 % Inventory Turnover ratio Cost of Good Sold/Average or closing inventory 11000/3100 3.55 times Debt To equity Ratio T0tal Liabilities/Total Equity 10945/64510 0.17 Times Interest Earned EBIT/Interest Expense 8550/100 85.50 times rounded off to two decimal
Related Questions
drjack9650@gmail.com
Navigate
Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.