Chapter 14, Problem 14.11E

Wiemers Corporations comparative balance sheets are presented on the next page.

WIEMERS CORPORATION

Balance Sheets

December 31

	2017	2016
Cash	$ 4,300	$ 3,700
Accounts receivable (net)	21,200	23,400
Inventory	10,000	7,000
Land	20,000	26,000
Buildings	70,000	70,000
Accumulated depreciation—buildings	(15,000)	(10,000)
Total	$110,500	$120,100
Accounts payable	$ 12,370	$ 31,100
Common stock	75,000	69,000
Retained earnings	23,130	20,000
Total	$110,500	$120,100

Wiemers’s 2017 income statement included net sales of $100,000, cost of goods sold of $60,000, and net income of $15,000.

Instructions

Compute the following ratios for 2017.

(a) Current ratio.

(b) Acid-test ratio.

(c) Accounts receivable turnover.

(d) Inventory turnover.

(e) Profit margin.

(f) Asset turnover

(g) Return on assets.

(h) Return on common stockholders’ equity.

(i) Debt to assets ratio.