Calculate the ratios below given the financial data presented to your left. Answers Measures of...
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Calculate the ratios below given the financial data presented to your left. Answers Measures of Short-term Liquidity current assets / current liabilities quick assets / current liabilities net sales /accounts receivable 365 days/receivables turnover rate cost of goods sold/inventory current ratio quick ratico receivables turnover rate days to collect receivables inventory turnover rate Measures of Long-term Credit Risk total liabilities/total assets operating income /annual interest expense debt ratio Times Interest Earned Measures of Profitability net income / sales net income/total assets net income/total equity Profi Margin return on assets return on equity Account Total Current Asset Cash $2,500 Accounts receivable 1,900 12,000 $16,400 nventory Fixed Asset Property, plant and equipment 20,000 Total Assets $36,400 Current Liability Accounts payable Wages payable $5,000 3,000 $8,000 Long-term Liability Bonds payable $9,0009,000 Equity Common Stock Retained Earnings $14,000 5,400 19,400 otal Liabilities Equity $36,400 The Income Statement Account Net sales Cost of goods sold gross profit Operating expenses operating income Interest expense Tax expense net income Amount $60,000 35,000 25,000 8,000 17,000 600 4,100 $12,300
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