Prepare an income statement and a balance sheet for this company using the information provided. Calculate: 6. 1. Return on equity 2. Current ratio Ratio of total debt and liabilities to shareholder's equity 3. Quick ratio 7. Interest coverage 4. NWC-to-total-Assets (Working 8. Net profit margin capital to assets) 9. Sales to total assets (Asset turnover) 10. Return on assets 5. Ratio of total debt and liabilities to total assets 11. Equity multiplier
Prepare an income statement and a balance sheet for this company using the information provided. Calculate: 6. 1. Return on equity 2. Current ratio Ratio of total debt and liabilities to shareholder's equity 3. Quick ratio 7. Interest coverage 4. NWC-to-total-Assets (Working 8. Net profit margin capital to assets) 9. Sales to total assets (Asset turnover) 10. Return on assets 5. Ratio of total debt and liabilities to total assets 11. Equity multiplier
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
5
Transcribed Image Text:Below are numbers from a balance sheet and income statement. Construct the financial ratios
requested below.
Sales
513504
Operating Costs
368102
Depreciation Expense
10000
Interest Expense
5000
Tax Expense
29408
Cash
1000
Receivables
30000
Inventories
61350
Fixed Assets, Net
50000
Payables
11000
Accrued Expenses
10000
Long-Term Loan
50000
Common Equity
71350
Transcribed Image Text:Prepare an income statement and a balance sheet for this company using the information
provided. Calculate:
6.
1. Return on equity
2. Current ratio
Ratio of total debt and liabilities to
shareholder's equity
7. Interest coverage
Net profit margin
3. Quick ratio
8.
4. NWC-to-total-Assets (Working
capital to assets)
9. Sales to total assets (Asset turnover)
10. Return on assets
5. Ratio of total debt and liabilities to
total assets
11. Equity multiplier
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