X4-6. (Ratio analysis) The balance sheet and ine M Guinea Coconut Company are as follows: Balance Sheet ($000) New $ 550 2,500 Cash 1.100 $ 4,150 Accounts receivable Inventories Current assets 4,700 Net fined assets $8.850 Total assets $1,200 Accounts payable 680 Accrued expenses 320 Short-term notes payable $2.200 Current liabilities 2,300 Long-term debt 4,350 $8,850 Owners' equity Total liabilities and owners' equity Income Statement ($000) Sales (all credit) $8,300 Cost of goods sold (3.500) Gross profit 4.800 Operating expenses (includes $600 depreciation) Operating profits (3.000) $1,800 Interest expense (380) $1,420 Earnings before taxes Income taxes (20%) (284) Net income $1.136 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
X4-6. (Ratio analysis) The balance sheet and ine M Guinea Coconut Company are as follows: Balance Sheet ($000) New $ 550 2,500 Cash 1.100 $ 4,150 Accounts receivable Inventories Current assets 4,700 Net fined assets $8.850 Total assets $1,200 Accounts payable 680 Accrued expenses 320 Short-term notes payable $2.200 Current liabilities 2,300 Long-term debt 4,350 $8,850 Owners' equity Total liabilities and owners' equity Income Statement ($000) Sales (all credit) $8,300 Cost of goods sold (3.500) Gross profit 4.800 Operating expenses (includes $600 depreciation) Operating profits (3.000) $1,800 Interest expense (380) $1,420 Earnings before taxes Income taxes (20%) (284) Net income $1.136 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
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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ya Guinea Coconut Company are as follows:
$ 550
Balance Sheet ($000)
2,500
Cash
1.100
Accounts receivable
$ 4,150
Inventories
Current assets
4,700
Net fined assets
$8.850
Total assets
$1,200
Accounts payable
680
Accrued expenses
320
Short-term notes payable
$2.200
Current liabilities
2,300
Long-term debt
Owners equity
Total liabilities and owners' equity
4.350
$8850
Income Statement ($000)
Sales (all credit)
$8,300
Cost of goods sold
Gross profit
(3.500)
4.800
Operating expenses (includes $600 depreciation)
13.000)
Operating profits
$1.800
Interest expense
(380)
Earnings before taxes
$1,420
Income taxes (20%)
(284)
Net income
$1.136
Calculate the following ratios:
Current ratio
Times interest earned
Inventory turnover
Total asset turnover
Operating return on assets
Debt ratio
Average collection period
Fixed-asset turnover
Operating profit margin
Return on equity"
Transcribed Image Text:pe and En
ya Guinea Coconut Company are as follows:
$ 550
Balance Sheet ($000)
2,500
Cash
1.100
Accounts receivable
$ 4,150
Inventories
Current assets
4,700
Net fined assets
$8.850
Total assets
$1,200
Accounts payable
680
Accrued expenses
320
Short-term notes payable
$2.200
Current liabilities
2,300
Long-term debt
Owners equity
Total liabilities and owners' equity
4.350
$8850
Income Statement ($000)
Sales (all credit)
$8,300
Cost of goods sold
Gross profit
(3.500)
4.800
Operating expenses (includes $600 depreciation)
13.000)
Operating profits
$1.800
Interest expense
(380)
Earnings before taxes
$1,420
Income taxes (20%)
(284)
Net income
$1.136
Calculate the following ratios:
Current ratio
Times interest earned
Inventory turnover
Total asset turnover
Operating return on assets
Debt ratio
Average collection period
Fixed-asset turnover
Operating profit margin
Return on equity
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