Measures of liquidity, solvency, and profitability Questions Instructions Determ
ID: 2542076 • Letter: M
Question
Measures of liquidity, solvency, and profitability Questions Instructions Determine the following measures for 2012 (round to one decimal pliace, including pecentages,excepr for per-share amounta 1. Working Capital 2. Current ratio 3 ratio 4. Accounts receivable turnover 5. Number of days' sales in receivabies 6.Inventory burnover .Number of days sales in inventory 8 Ratio of ficed assets to long-term labilities 9 Rato of lablities to stockholders' equity 10. Times interest earned 11. Asset tunover 2. Return on total assets 13. Return on stockholders equity 14 Returm on common stockholders' equity 15 Earnings per share on common stock 16. Price-eamings ratio 17. Dividends per share of common stock 18 Dividend yield Check My Work All work saved. hpExplanation / Answer
S.No Particulars Formula Caluclation Result 1 Working Capital Current Assets - Current Liabilities =2464000-880000 1584000 2 Current Ratio Current Asstts / Current Liabilities =2464000/880000 2.8 3 Quik Ratio Current Asstts- Inventories-Prepaid Expenses/Current Liabilities =(2464000-420000-108000)/880000 2.2 4 Account Receivable Turnover Net Credit Sales/Average Account Receivable =10850000/542500 20 5 Number of day's sales in Receivables (Average Account receivable/Net credit Sales)*Number of days2 =542500/10850000*365 18.25 6 Inventory Turnover Cost of Goods Sold/Average Inventories =6000000/400000 15 7 No. Of days sales inventory (Average Inventory/Net credit Sales)*Number of days =400000/10850000*365 13.46 8 Ratio of Fixed assets to Long term liabilities Fixed Assets/ Long Term liabilities =(5760000+800000)/3200000 2.05 9 Ratio of Liabilities to Shareholders Equity Liabilities/Share holders Equity =4080000/4944000 0.83 10 Times Inerest earned Earnings before intrest and Tax/Interest expense =1152000/132000 8.7 11 Asset Turnover Ratio Net Sales/Average total Assets =(10850000)/8369000 1.3 12 Return On Total Assets Annual Net Income/Average Toatal Assets =600000/8369000*100 7.17 13 Return on stakeholders Equity Annual Net Income/Average Stake Holder Equity =600000/4699000*100 12.77 14 Return on common Stake holders equity Annual Net Income/Average Common Stake Holder Equity =600000/500000*100 120 15 EPS on Common stock Earings/Number of Shares =600000/100000 6 16 Price Earning Ratio Current Share Price/Earnings Per Share =82/6 13.67