Please help answer this question! It has multiple parts and must be completed th
ID: 2485775 • Letter: P
Question
Please help answer this question! It has multiple parts and must be completed the way the template I provided shows. Please include the formulas too!
P14-6B The comparative statements of Lauer Company are presented belovw Compute numerous ratios. LAUER COMPANY Income Statement For the Year Ended December 31 (LO 2) 2017 $650,000 2016 S520,000 Net sales (all on account) Expenses 415,000 150,800 Cost of goods sold Selling and administrative Interest expense Income tax expense 354,000 114,800 6,000 14,000 488,800 7,200 18,000 591,000 Total expenses Net incomeExplanation / Answer
Ratio foor 2017 Formula Numerator Denominator Ratio a Currenr Ratio= Current Asset /Current Liab = 235,000.00 145,000 1.62 b Acid Test ratio= (Current Asset-Inventory)/Current Laib= 151,000 145,000 1.04 c AR Turnover Net Credit Sales/Average Accounts receivable 650,000 83,000 7.83 d Inventory Turnover = Cost of Goods Sold/Average Inventory 415,000 77,000 5.39 e Profit Margin Net Profit /Net Sales 59,000 650,000 9.08% f Asset Turnover Net Sales /Total Average Assets 650,000 599,000 1.09 g Return on Assets Net Profit/Average Assets 59,000 599,000 9.85% h Return on Common stockholders'equity Net Income/Avg Stockholders' equity 59,000 366,500 16.10% i EPS = Net Income/No of shares outstanding= 59,000 30,000 1.97 j P/E Rato= Price per share/EPS 19.50 1.97 9.92 k Payout ratio Dividend Paid /Net Income 26,000 59,000 44.07% l Debt to Assets= Total Debt/Total Asstes= 255,000 638,000 0.40 m Times Interest Earned = EBIT /Interest Expense 84,200 7,200 11.69
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