are considered very good.) onsidered good for manu- alysis. Changes in Various Ratios Presented below is selected information for Turner Company: P14-5A. Sales revenue.. Cost of goods sold Interest expense. Income tax expense 2019 2018 $950,000 575,000 20,000 $850,000 545,000 20,000 30,000 Net income.. Cash flow from operating activities. Capital expenditures.. Accounts receivable (net), December 31 Inventory, December 31 Stockholders' equity, December 31 Total assets, December 31.. 27,000 .... 65,000 70,000 45,000 55,000 60,000 45,000 126,000 196,000 450,000 750,000 120,000 160,000 400,000 675,000 Required Calculate the following ratios for 2019. The 2018 results are given for comparative purposes. a.
are considered very good.) onsidered good for manu- alysis. Changes in Various Ratios Presented below is selected information for Turner Company: P14-5A. Sales revenue.. Cost of goods sold Interest expense. Income tax expense 2019 2018 $950,000 575,000 20,000 $850,000 545,000 20,000 30,000 Net income.. Cash flow from operating activities. Capital expenditures.. Accounts receivable (net), December 31 Inventory, December 31 Stockholders' equity, December 31 Total assets, December 31.. 27,000 .... 65,000 70,000 45,000 55,000 60,000 45,000 126,000 196,000 450,000 750,000 120,000 160,000 400,000 675,000 Required Calculate the following ratios for 2019. The 2018 results are given for comparative purposes. a.
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
Problem 1PS
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I need help in part a; please explain me in steps. thanks
Transcribed Image Text:% are considered very good.)
considered good for manu-
analysis.
P14-5A. Changes in Various Ratios Presented below is selected information for Turner Company:
Sales revenue.
Cost of goods sold
Interest expense.
Income tax expense
Net income...
Cash flow from operating activities.
Capital expenditures...
Accounts receivable (net), December 31
Inventory, December 31..
Stockholders' equity, December 31
Total assets, December 31.
2019
2018
$950,000
575,000
20,000
27,000
65,000
70,000
45,000
126,000
196,000
450,000
750,000
$850,000
545,000
20,000
30,000
55,000
60,000
45,000
120,000
160,000
400,000
675,000
Required
Calculate the following ratios for 2019. The 2018 results are given for comparative purposes.
а.
Transcribed Image Text:2018
35.9%
1.
Gross profit percentage
8.3%
2.
Return on assets
6.5%
3.
Return on sales
Return on common stockholders' equity
(no preferred stock was outstanding)
Accounts receivable turnover.
13.9%
8.00
4.
5.
Average collection period.
Inventory turnover.
Times-interest-earned ratio
45.6 day
6.
3.61
7.
5.25
8.
1.33
9.
Operating-cash-flow-to-capital-expenditures ratio .
Comment on the changes between the two years.
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