Calculate the following ratios for Lake of Egypt Marina, Inc., as of year-end 20

Question

  

Calculate the following ratios for Lake of Egypt Marina, Inc., as of year-end 2012. (Use sales when computing the inventory turnover and use common stockholders' equity when computing the equity multiplier. Round your answers to 2 decimal places. Use 365 days a year.)

PE ratio

times

Assets   Liabilities and Equity   Current assets:   Current liabilities:      Cash and marketable securities $ 72 $ 48      Accrued wages and taxes $ 56 $ 54      Accounts receivable 80 60      Accounts payable 80 66      Inventory 294 186      Notes payable 48 54         Total $ 446 $ 294         Total $ 184 $ 174   Fixed assets:   Long term debt: $ 376 $ 240      Gross plant and equipment $ 400 $ 336   Stockholders equity:      Less: Depreciation 86 66      Preferred stock (6 million shares) $ 6 $ 6      Common stock and paid in surplus
       (24 million shares) 24 24      Net plant and equipment $ 314 $ 270      Retained earnings 210 156      Other long term assets 40 36         Total $ 354 $ 306         Total $ 240 $ 186      Total assets $ 800 $ 600   Total liabilities and equity $ 800 $ 600

Explanation / Answer

Current ratio = current assets/ current liabilities = 446/184 = 2.42 = ANswer a)

Quick ratio = (current assets

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