Answered: a. Determine the company's ratio of…

Managerial Accounting

15th Edition

ISBN:9781337912020

Author:Carl Warren, Ph.d. Cma William B. Tayler

Publisher:Carl Warren, Ph.d. Cma William B. Tayler

Chapter16: Financial Statement Analysis

Section: Chapter Questions

Problem 6BE

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Question

The following information was taken from Slater Company's balance sheet:

Fixed assets (net)	$2,258,704
Long-term liabilities	576,200
Total liabilities	819,420
Total stockholders' equity	1,951,000

Round your answers to two decimal places.

a. Determine the company's ratio of fixed assets to long-term liabilities.
fill in the blank 1

b. Determine the company's ratio of liabilities to stockholders' equity.
fill in the blank 2

Richards Corporation had net income of $307,767 and paid dividends to common stockholders of $52,700. It had 59,300 shares of common stock outstanding during the entire year. Richards Corporation's common stock is selling for $53 per share. The price-earnings ratio (rounded to two decimal places) is

a.10.21 times

b.11.25 times

c.11.76 times

d.9.18 times

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