The comparative statements of Beulah Company are presented below. Additional dat
ID: 2375519 • Letter: T
Question
The comparative statements of Beulah Company are presented below.
Additional data:
The common stock recently sold at $19.00 per share.
Compute the following ratios for 2014. (Round Earnings per share and Acid-test ratio to 2 decimal places, e.g. 1.65, and all others to 1 decimal place, e.g. 6.8 or 6.8% .)
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BEULAH COMPANYIncome Statement
For the Years Ended December 31 2014 2013 Net sales (all on account) $501,000 $421,000 Expenses Cost of goods sold 315,000 253,000 Selling and administrative 119,000 114,000 Interest expense 7,700 5,600 Income tax expense 19,400 14,900 Total expenses 461,100 387,500 Net income $ 39,900 $ 33,500
Explanation / Answer
current ratio=206400/134900=1.53
acid test ratio=126600/134900=0.938
accounts receivable turnover=501000/80000=6.26
inventory turnover=315000/69800=4.51
Profit margin=39900/501000=7.96%
Asset turnover=501000/629400=0.796
Return on assets=39900/629400=6.34%
return on common stockholder=39900/374500=0.1065 or 10.65%
EPS=39900/30600=1.31
P/E ratio=19/1.31=14.5
payout ratio=DPS/EPS , please mention dividend then only it can be computed...
Debt to total assets=254900/629400=0.405
Times interest earned=67000/7700=8.7