Question

In the Chapter Eight homework you were given the following information on ABC Enterprises.

In its closing financial statements for its first year in business, ABC Enterprises, had cash of $242, accounts receivable of $850, inventory of $820, net fixed assets of $3,408, accounts payable of $700, short-term notes payable of $740, long-term liabilities of $1,100, common stock of $1,160, retained earnings of $1,620, net sales of $2,768, cost of goods sold of $1,210, depreciation of $360, interest expense of $160, taxes of $312, addition to retained earnings of $508, and dividends paid of $218.

Calculate the following ratios:

Return on equity
Return on total assets
Net profit margin
Gross profit margin
Sales to asset ration
Current Ratio
Total-debt-total-asset ratio
Debt-to-equity ratio
Equity multiplier
Interest coverage ratio

Answer 1

ROE = net income/equity = (additions to retained earnings +dividends)/((common stock+retained earnings)= (508+218)/(1160+1620)=26.12%

ROA =(additions to retained earnings +dividends)/(receivables+inventory+net fixed asset+cash)

=(508+218)/(850+820+3408+242)=13.65%

Net Profit Margin = net income/sales = (508+218)/2768=26.23%

Gross profit margin = (sales-COGS)/sales = (2768-1210)/2768=56.29%

Sales to asset ratio = 2768/(850+820+3408+242)=52.03%

Please ask remaining separatey, I have done one bonus