3. (16 points) Use the following to answer parts A- D Financial statements for O

Question

3. (16 points) Use the following to answer parts A- D Financial statements for Oramway Company appear below Oramway Company Statement of Financial Position December 31, 2009 and 2008 (dollars in thousands) 2009 2008 Current assets: Cash and marketable securities..110 100 180 110 180 100 Inventory Prepaid expenses 480 460 Total current assets Noncurrent assets: Total assets .. Current liabilities: 1.7 Plant & equipment, ne. $ 170 60 Accounts payable. Accrued liabilities. Notes payable, short te $170 60 40 470 520 Total current liabilities Noncurrent liabilities: Bonds payable. 1.020 Stockholders' equity: 100 180 100 Preferred stock, $10 par, 15% Common stock, $15 par. Additional paid-in capital-common 250 700 250 stock. 37 Total stockholders' equity Total liabilities & stockholders' equity$2,330 $2250

Explanation / Answer

a) Earning per share = (210-15)/12 = 16.25 per share

so answer is b) 16.25

c) Return on total assets = (350*70%)*100/2290 = 10.7%

so answer is a) 10.7%

d) Current ratio = 480/470 = 1.02 to 1

so answer is a) 1.02 to 1

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