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4-6. (Ratio analysis) The balance sheet and income statement for the A. Thiel Mfg. MyLab Company are as follows: Balance Sheet ($000) Cash Accounts receivable $ 500 2,000 Inventories Current assets Net fixed assets Total assets Accounts payable 1,000 $3,500 4,500 $8,000 $1,100 Accrued expenses 600 Short-term notes payable 300 Current liabilities $2,000 Long-term debt 2,000 Owners' equity 4,000 Total liabilities and owners' equity $8,000 Income Statement ($000) Sales (all credit) $8,000 Cost of goods sold (3,300) Gross profit 4,700 Operating expenses (includes $500 depreciation) (3,000) Operating profits $1,700 Interest expense (367) Earnings before taxes $1,333 Income taxes (21%) (280) $1,053 Net income Calculate the following ratios: Current ratio Times interest earned Inventory turnover Total asset turnover Operating profit margin Operating return on assets Debt ratio Average collection period Fixed-asset turnover Return on equity

4-6. (Ratio analysis) The balance sheet and income statement for the A. Thiel Mfg. MyLab Company are as follows: Balance Sheet ($000) Cash Accounts receivable $ 500 2,000 Inventories Current assets Net fixed assets Total assets Accounts payable 1,000 $3,500 4,500 $8,000 $1,100 Accrued expenses 600 Short-term notes payable 300 Current liabilities $2,000 Long-term debt 2,000 Owners' equity 4,000 Total liabilities and owners' equity $8,000 Income Statement ($000) Sales (all credit) $8,000 Cost of goods sold (3,300) Gross profit 4,700 Operating expenses (includes $500 depreciation) (3,000) Operating profits $1,700 Interest expense (367) Earnings before taxes $1,333 Income taxes (21%) (280) $1,053 Net income Calculate the following ratios: Current ratio Times interest earned Inventory turnover Total asset turnover Operating profit margin Operating return on assets Debt ratio Average collection period Fixed-asset turnover Return on equity

Essentials Of Investments
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
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Please help with problem 4-6
4-6. (Ratio analysis) The balance sheet and income statement for the A. Thiel Mfg. MyLab Company are as follows: Balance Sheet ($000) Cash Accounts receivable $ 500 2,000 Inventories Current assets Net fixed assets Total assets Accounts payable 1,000 $3,500 4,500 $8,000 $1,100 Accrued expenses 600 Short-term notes payable 300 Current liabilities $2,000 Long-term debt 2,000 Owners' equity 4,000 Total liabilities and owners' equity $8,000 Income Statement ($000) Sales (all credit) $8,000 Cost of goods sold (3,300) Gross profit 4,700 Operating expenses (includes $500 depreciation) (3,000) Operating profits $1,700 Interest expense (367) Earnings before taxes $1,333 Income taxes (21%) (280) $1,053 Net income Calculate the following ratios: Current ratio Times interest earned Inventory turnover Total asset turnover Operating profit margin Operating return on assets Debt ratio Average collection period Fixed-asset turnover Return on equity
Transcribed Image Text:4-6. (Ratio analysis) The balance sheet and income statement for the A. Thiel Mfg. MyLab Company are as follows: Balance Sheet ($000) Cash Accounts receivable $ 500 2,000 Inventories Current assets Net fixed assets Total assets Accounts payable 1,000 $3,500 4,500 $8,000 $1,100 Accrued expenses 600 Short-term notes payable 300 Current liabilities $2,000 Long-term debt 2,000 Owners' equity 4,000 Total liabilities and owners' equity $8,000 Income Statement ($000) Sales (all credit) $8,000 Cost of goods sold (3,300) Gross profit 4,700 Operating expenses (includes $500 depreciation) (3,000) Operating profits $1,700 Interest expense (367) Earnings before taxes $1,333 Income taxes (21%) (280) $1,053 Net income Calculate the following ratios: Current ratio Times interest earned Inventory turnover Total asset turnover Operating profit margin Operating return on assets Debt ratio Average collection period Fixed-asset turnover Return on equity
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