Question

Cash $66,500 $50,500 Accounts receivable (net) 91,000 59,000 Inventories 91,000 111,000 Plant assets (net) 381,500 321,000 Accounts payable 54,500 40,000 Salaries and wages payable 10,000 4,500 Bonds payable 69,000 69,500 8% Preferred stock, $40 par 100,000 100,000 Common stock, $10 par 120,000 90,000 Paid-in capital in excess of par 80,000 70,000 Retained earnings 196,500 167,500 Net credit sales 930,000 Cost of goods sold 705,000 Net income 81,000 Compute the following ratios: (Round answers to 2 decimal places e.g. 15.25.) (a) Acid-test ratio at 12/31/18 : 1 (b) Accounts receivable turnover in 2018 times (c) Inventory turnover in 2018 times (d) Profit margin on sales in 2018 % (e) Return on common stock holders’ equity in 2018 % (f) Book value per share of common stock at 12/31/18 $

Answer 1

Computation of ratios....