Calculate the ratios below. Round answers to two decimal places. Average inventory$ 6,000Average total assets80,000Cost of goods sold21,000Income taxes expense3,600Interest expense2,000Net income4,800Net sales40,000Market price, December 31, on 2,000 shares$36 / share A. Return on assets C. Inventory turnoverB. Price/earnings (P/E) ratio D. Interest coverage ratio

Ratio Analysis: Ratio analysis is a tool that establishes a relationship between the different…

Answered: Calculate the ratios below. Round…

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter10: Inventory

Section: Chapter Questions

Problem 16EA: Compute Altoona Companys (a) inventory turnover ratio and (b) number of days sales in inventory...

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Calculate the ratios below. Round answers to two decimal places.

Average inventory	$ 6,000
Average total assets	80,000
Cost of goods sold	21,000
Income taxes expense	3,600
Interest expense	2,000
Net income	4,800
Net sales	40,000
Market price, December 31, on 2,000 shares	$36 / share

A. Return on assets		C. Inventory turnover
B. Price/earnings (P/E) ratio		D. Interest coverage ratio

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