ased upon the information given below, calculate the following: Cash ratio Inventory turnover EPS Total asset turnover Debt ratio Debt-to-equity ratio Times interest earned ROI Net profit margin ROE Market price/Book value P/E Average Collection Period BALANCE SHEET ASSETS LIABILITIES & STOCKHOLDERS EQUITY Cash $ 1,500 Accounts payable $12,500 Marketable securities 2,500 Notes payable 12,500 Accounts receivable 15,000 Total current liabilities $25,000 Inventory 33,000 Long-term debt 22,000 Total current assets $52,000 Total debt $47,000 Fixed assets (net) 35,000 Common stock (par value) $ 5,000 Total assets $87,000 Contributed capital in excess of par 18,000 Retained earnings 17,000 Total stockholders’ equity $40,000 Total liabilities & Stockholders’ equity $87,000 INCOME STATEMENT Sales (all on credit) $130,000 Cost of sales 103,000 Gross margin $ 27,000 Operating expenses* 16,000 EBIT or operating income 11,000 Interest expense 3,000 Earnings before taxes $ 8,000 Income tax 3,000 Earnings after taxes $ 5,000 *Includes $200 in lease payments. OTHER INFORMATION Stock market price $9.50 Book value/share $8.00 Number of shares 5,000
Based upon the information given below, calculate the following:
Cash ratio Inventory turnover
EPS Total asset turnover
Debt ratio Debt-to-equity ratio
Times interest earned
Net profit margin
Market price/Book value P/E
Average Collection Period
BALANCE SHEET
ASSETS LIABILITIES &
Cash $ 1,500 Accounts payable $12,500
Marketable securities 2,500 Notes payable 12,500
Accounts receivable 15,000 Total current liabilities $25,000
Inventory 33,000 Long-term debt 22,000
Total current assets $52,000 Total debt $47,000
Fixed assets (net) 35,000 Common stock (par value) $ 5,000
Total assets $87,000 Contributed capital
in excess of par 18,000
Total stockholders’ equity $40,000
Total liabilities &
Stockholders’ equity $87,000
INCOME STATEMENT
Sales (all on credit) $130,000
Cost of sales 103,000
Gross margin $ 27,000
Operating expenses* 16,000
EBIT or operating income 11,000
Interest expense 3,000
Earnings before taxes $ 8,000
Income tax 3,000
Earnings after taxes $ 5,000
*Includes $200 in lease payments.
OTHER INFORMATION
Stock market price $9.50
Book value/share $8.00
Number of shares 5,000
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