Balance Sheets December 31 2017 2016 4,200 23,800 7,300 26,000 69,500 (15,400) (

Question

Balance Sheets December 31 2017 2016 4,200 23,800 7,300 26,000 69,500 (15,400) (11,000) $109,500 $119,800 $31,300 68,800 19,700 $109,500 $119,800 Cash Accounts receivable (net) Inventory Land Buildings Accumulated depreciation-building:s $ 4,600 20,700 10,100 20,000 69,500 Total Accounts payable Common stock Retained earnings $ 12,500 75,800 21,200 Total Wiemers's 2017 income statement included net sales of $108,000, cost of goods sold of $61,000, and net income of $14,100 Compute the following ratios for 2017, (Round answers to 2 decimal places, e.g. 1.65, or 1.65% .) Current ratio Acid-test ratio Accounts receivable turnover Inventory turnover Profit margin Asset turnover times times times Return on assets Return on common stockholders' equity Debt to assets ratio

Explanation / Answer

Note: as per guideline I have answered first four parts of the question.

Working capital = Current assets- Currrent Liabilities Total current assets(Cash $4600+AR $20700+Inventory $10100) $        35,400 Less:Current liabilities (AP $12500) $        12,500 Working capital $        22,900 1) Current Ratio = Current assets/ Currrent Liabilities =$35400/$12500 =2.83 2) Acid test ratio = Quick asset/ Quick Liabilities Quick ratio = Current asset- inventory/ Quick Liabilities = Cash $4600+AR $20700/AP $12500 =$25300/$12500 = 2.02 3) Accounts receivable turnover = Net Credit Sales/ Average account receivables = $108,000/($23800+$20700)*1/2 = $108,000/$22,250 = 4.85 times 4) Inventory Turnover = Cost of goods sold/ Average Inventory =$61,000/ ($7300+$10100)*1/2 =7.01times

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