Cash 4500 Accts Payable 4400 Accounts Receivable 6200 Wages Payable 2100 Inventory 7000 Notes Payable 4000 Plant & Equipment 7300 Long Term Debt 5000 Equity 9500 Sales = 28,400 Net Income = 2,300 EBIT = 1,00 Interest Charge = 850 Current Ratio b. Quick Ratio Total Asset Turnover
- Using the data below, calculate the following ratios.
Cash 4500 Accts Payable 4400
Inventory 7000 Notes Payable 4000
Plant & Equipment 7300 Long Term Debt 5000
Equity 9500
Sales = 28,400 Net Income = 2,300 EBIT = 1,00 Interest Charge = 850
Current Ratio b. Quick Ratio
- Total Asset Turnover d. Fixed Asset Turnover
- Inventory Turnover f. Interest Coverage TIE
- Equity Multiplier Tot Assets/Equity h. L/T Debt Ratio
- ROA j. ROE
Working :-
1) Calculation of current assets :-
Cash + accounts receivable + inventory
= 4500 + 6200 + 7000
= 17700
2) Calculation of current liabilities :-
Accts payable + wages payable + notes payable
= 4400 + 2100 + 4000
= 10500
Note : nothing is given about the maturity period of notes payable and hence considered as current Liability.
Step by step
Solved in 2 steps
- Inventory Turnover f. Interest Coverage TIE
- Equity Multiplier Tot Assets/Equity h. L/T Debt Ratio
- ROA j. ROE
by Bartleby Expert
