Question

The Balance Sheet and the Income Statement for ABC Manufacturing Corporation are as follows:
DATA (All amounts in SAR unless otherwise indicated, all sales are on credit and no hard keys.)
Balance Sheet:
ABC Corporation Balance Sheet
Other current assets
Total current assets
Gross fixed assets
Accumulated depreciation
Net fixed assets
Total assets
LIABILITIES (DEBT) AND EQUITY
Accounts payable
Short-term notes payable
Total current liabilities
Long-term debt
Total liabilities
Common stock (par & paid in capital)
Retained earnings
Total common equity
Total liabilities and equity
ABC Corporation Income Statement
Sales
Cost of goods sold
Gross profits
Operating expenses:
Selling and G&A expenses
Depreciation expenses
Total operating expenses
Operating income (earnings before interest and taxes)
Interest expense
Earnings before taxes
Income taxes
Net Income
Number of shares (thousands)
Dividends (thousands)
Market price per share
Calculate the following ratios:
Current ratio
Acid-test ratio
Days in receivables
Days in inventories
Operating return on assets
Operating profit margin
Total asset turnover
Fixed asset turnover
Debt ratio
Times interest earned
Return on equity
Earnings per share
Dividends per share
Price/Earnings
Book value per share
Market/Book

Answer 1

1. Current Ratio = Current Assets ÷ Current Liabilities

2. Acid Test Ratio = Current Asset -( Inventory - Prepaid Expenses) ÷ Current Liabilities

3. Days in receivables = 365 ÷ Receivable Turnover

Answer will come in days

And Receivable Turnover Ratio = Total Sales ÷ Avg Receivables

4. Days in inventories = 365 ÷ Inventory Turnover Ratio = (Answer will come in days)

And Inventory Turnover Ratio = Cost of goods sold ÷ Average Inventory (Answer will be in times)