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The LACAL Company sells computer parts through a retail store that it operates.

ID: 2453258 • Letter: T

Question

The LACAL Company sells computer parts through a retail store that it operates. The firm's comparative income statement and balance sheet for the years 2013 and 2012 are shown below.

   

  

  

   

Calculate the current ratio for 2012 and 2013. (Round your answer to 2 decimal places.)

Calculate the acid-test ratio for 2012 and 2013. (Round your answer to 2 decimal places.)

Calculate the inventory turnover for 2012 and 2013. (Do not round your intermediate calculations. Round your answer to 2 decimal places.)

Calculate the return on sales for 2012 and 2013. (Round your answer to 1 decimal place. Omit the "%" sign in your response.)

Calculate the earnings per share of common stock for 2012 and 2013. (Do not round your intermediate calculations. Round your answer to 2 decimal places. Omit the "$" sign in your response.)

Calculate the book value per share of common stock for 2012 and 2013. (Round your answer to 2 decimal places. Omit the "$" sign in your response.)

Calculate the return on total assets for 2012 and 2013. (Round your answer to 2 decimal places. Omit the "%" sign in your response.)

Calculate the ratio of stockholders’ equity to total equities for 2012 and 2013. (Round your answer to 3 decimal places. Omit the "%" sign in your response.)

Calculate the rate of return on stockholders’ equity for 2012 and 2013. (Round your answer to 2 decimal places. Omit the "%" sign in your response.)

Calculate the asset turnover for 2012 and 2013. (Round your answer to 2 decimal places.)

The LACAL Company sells computer parts through a retail store that it operates. The firm's comparative income statement and balance sheet for the years 2013 and 2012 are shown below.

Explanation / Answer

Year 2013 Year 2012 Year 2011 1 Current ratio=CurrentAsset/Current Liabilities=               0.88               0.84 2 Acid test ratio= (CurrentAsset-inventory )/Current Liab               0.52               0.51 Inventory level        213,300        180,000          176,000 Average Inventory        196,650        178,000 3 Inventory Turnover=Costof goods sold/Average inventory               1.60               1.61 4 Return on sales=Net Income/Net sales 18.90% 18.00% No of common shares outstanding        189,000        180,000          180,000 Average no of common shares outstanding        184,500        180,000 5 Earning Per share=Net Income after tax/Average common shares outstanding $           0.59 $          0.55 6 Book Value per share=Stockholders Equity/Avergae Outstanding common stock               3.42               2.70 7 Return on Total Asset=Net Income/Total Assets 8.01% 8.25% 8 Stakeholders Equity/Total Equity=               1.00               1.00 9 Rate of return on Stakeholders Equity= Net Income/StakeHolders Equity 17.11% 20.37% 10 Asset Turnover =Net sales/Total Assets               0.42               0.46

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