Sales: 561,528 Operating cost: 396,916 Depreciation: 10,000 Intrest expense: 5,0

Question

Sales: 561,528

Operating cost: 396,916

Depreciation: 10,000

Intrest expense: 5,000

Tax expense: 29,408

Cash: 1,000

Recivables: 30,000

Inventories: 66,152

Fixed Assests, Net: 50,000

Payables: 11,000

Accrued Expenses: 10,000

Long-Term Loan: 50,000

Common equity: 76,152

Calculate the following and prepare an income statement and a balance sheet:

1. Current ratio

2. Quick ration

3. NWC to- total-assets( Working captial to assets)

4. Ratio of total debt and liabilities to total assets

5. Ratio of total debt and liabilities to shareholder's equity

6. Intrest coverage

7. Net profit margin

8. Slaes to total assets ( Assets turnover)

9. Return on assets

10. Equity multiplier

11. Return on equity

Explanation / Answer

Note: Net income is $120204 however, common equity is only $76152 which is unexplainable. Kindly re-confirm all numbers provided.

1. Current ratio = Current assets/Current liabilities = $97152/$21000 = 4.63

2. Quick ratio = Quick assets/Current liabilities = ($1000 + $30000)/$21000 = $31000/$21000 = 1.48

3. NWC-to-total assets = (Current assets - Current liabilities)/Total assets = ($97152 - $21000)/$147152 = $76152/$147152 = 0.52

4. Ratio of total debt and liabilities to total assets = $71000/$147152 = 0.48

Per Chegg guidelines, first 4 sub-parts are answerable. Please post the remaining separately. Thank you.

Income Statement Sales 561528 Operating cost 396916 Depreciation 10000 Total operating expense 406916 Operating income 154612 Interest expense 5000 Income before taxes 149612 Tax expense 29408 Net income 120204

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