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Following is the balance sheet of Franklin Company for Year 3: FRANKLIN COMPANY Balance sheet Assets Cash Marketable securities Accounts receivable Inventory Property and equipment Accumulated depreciation Total assets Liabilities and Stockholders' Equity Accounts payable Current notes payable Bonds payable Mortgage payable Common stock Retained earnings $ 15,150 8,020 13,340 10,950 170,000 (12,800) $ 204,660 $ 8,300 3,200 4,900 21,968 114,000 52,300 Total liabilities and stockholders' equity $ 204,660 The average number of common stock shares outstanding during Year 3 was 860 shares. Net income for the year was $14,200. Required Compute each of the following: Note: Round your answer to 2 decimal places. For percentages, 0.2345 should be entered as 23.45. a. Current ratio b. Earnings per share c. Quick (acid-test) ratio d. Return on investment e. Return on equity f. Debt to equity ratio per share % %

Following is the balance sheet of Franklin Company for Year 3: FRANKLIN COMPANY Balance sheet Assets Cash Marketable securities Accounts receivable Inventory Property and equipment Accumulated depreciation Total assets Liabilities and Stockholders' Equity Accounts payable Current notes payable Bonds payable Mortgage payable Common stock Retained earnings $ 15,150 8,020 13,340 10,950 170,000 (12,800) $ 204,660 $ 8,300 3,200 4,900 21,968 114,000 52,300 Total liabilities and stockholders' equity $ 204,660 The average number of common stock shares outstanding during Year 3 was 860 shares. Net income for the year was $14,200. Required Compute each of the following: Note: Round your answer to 2 decimal places. For percentages, 0.2345 should be entered as 23.45. a. Current ratio b. Earnings per share c. Quick (acid-test) ratio d. Return on investment e. Return on equity f. Debt to equity ratio per share % %

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Following is the balance sheet of Franklin Company for Year 3: FRANKLIN COMPANY Balance sheet Assets Cash Marketable securities Accounts receivable Inventory Property and equipment Accumulated depreciation Total assets Liabilities and Stockholders' Equity Accounts payable Current notes payable Bonds payable Mortgage payable Common stock Retained earnings $ 15,150 8,020 13,340 10,950 170,000 (12,800) $ 204,660 $ 8,300 3,200 4,900 21,968 114,000 52,300 Total liabilities and stockholders' equity $ 204,660 The average number of common stock shares outstanding during Year 3 was 860 shares. Net income for the year was $14,200. Required Compute each of the following: Note: Round your answer to 2 decimal places. For percentages, 0.2345 should be entered as 23.45. a. Current ratio b. Earnings per share c. Quick (acid-test) ratio d. Return on investment e. Return on equity f. Debt to equity ratio per share % %
Transcribed Image Text:Following is the balance sheet of Franklin Company for Year 3: FRANKLIN COMPANY Balance sheet Assets Cash Marketable securities Accounts receivable Inventory Property and equipment Accumulated depreciation Total assets Liabilities and Stockholders' Equity Accounts payable Current notes payable Bonds payable Mortgage payable Common stock Retained earnings $ 15,150 8,020 13,340 10,950 170,000 (12,800) $ 204,660 $ 8,300 3,200 4,900 21,968 114,000 52,300 Total liabilities and stockholders' equity $ 204,660 The average number of common stock shares outstanding during Year 3 was 860 shares. Net income for the year was $14,200. Required Compute each of the following: Note: Round your answer to 2 decimal places. For percentages, 0.2345 should be entered as 23.45. a. Current ratio b. Earnings per share c. Quick (acid-test) ratio d. Return on investment e. Return on equity f. Debt to equity ratio per share % %
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