The balance sheet and income statement for the J. P. Robard Mfg. Company are as follows: 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
The balance sheet and income statement for the J. P. Robard Mfg. Company are as follows: 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
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:The balance sheet and income statement for the J. P.
Robard Mfg. Company are as follows:
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
J. P. Robard Mfg., Inc. Balance Sheet ($000)
Cash $550
Accounts receivable 2,100
Inventories 1,060
Current assets $3,710
Net fixed assets 4,520
Total assets $8,230
Accounts payable $1,200
Accrued expenses 610
Short-term notes payable 280
Current liabilities $2,090
Long-term debt 2,000
Owners' equity 4,140
Total liabilities and owners' equity $8,230
J. P. Robard Mfg., Inc. Income Statement ($000)
Net sales (all credit) $7,940
Cost of goods sold 3,310
Gross Profit $4,630
Operating expenses (includes $500 depreciation) 3,050
Net operating income $1,580
Interest expense 368
Earnings before taxes $1,212
Income taxes (40%) 485
Net income $727
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