Question

Use the following data to calculate the requested ratio or percent (with 1 decimal place): $84,000...

Use the following data to calculate the requested ratio or percent (with 1 decimal place): $84,000 cash; $128,000 accounts receivable; $290,000 total current assets; $350,000 total assets; $112,000 total current liabilities; $130,000 total liabilities; $280,000 cost of goods sold; $62,000 beginning inventory; $65,000 ending inventory; $455,000 net sales; $35,000 net income, before tax; $29,000 net income, after tax; and $220,000 stockholder s equity. What is the debt to asset ratio?

37.10%

1.30%

38.60%

32.00%

28.40%

Use the following data to calculate the requested ratio or percent (with 1 decimal place): $84,000 cash; $128,000 accounts receivable; $290,000 total current assets; $350,000 total assets; $112,000 total current liabilities; $130,000 total liabilities; $280,000 cost of goods sold; $62,000 beginning inventory; $65,000 ending inventory; $455,000 net sales; $35,000 net income, before tax; $29,000 net income, after tax; and $220,000 stockholder s equity. What is the inventory turnover?

4.3

7.2

2.2

4.5

6.8

Use the following data to calculate the requested ratio or percent (with 1 decimal place): $84,000 cash; $128,000 accounts receivable; $290,000 total current assets; $350,000 total assets; $112,000 total current liabilities; $130,000 total liabilities; $280,000 cost of goods sold; $62,000 beginning inventory; $65,000 ending inventory; $455,000 net sales; $35,000 net income, before tax; $29,000 net income, after tax; and $220,000 stockholder s equity. What is the Return on equity?

7.60%

13.20%

15.90%

6.30%

12.40%
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Homework Answers

Answer #1

The debt to assets ratio :

= Total liabilities/ total assets

= $130,000/ $350,000

= 37.1%

So, the correct option is option 1.

Inventory turnover ratio :

= COGS/Avergae inventory

Average inventory = beginning inventory + Ending inventory/ 2

= $62,000 + $65,000/ 2

= $63,500

So,

= $280,000/ $63,500

= 4.4  

So, the correct option is option 4.

Return on equity

= Net income after tax / Equity

= $29,000/ $220,000

= 13.18%

So, the correct option is option 2.

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