Response to the following Question: Table
Income Statement Balance Sheet
Sales $20,000,000 Assets:
Cost of Goods Sold 8,000,000 Cash $ 5,000,000
12,000,000 Marketable Securities 12,500,000
Selling and Administrative 1,600,000 Accounts Receivable, net 2,500,000
Depreciation 3,000,000 Inventory 30,000,000
7,400,000 Prepaid Expenses 5,000,000
Interest 2.000,000 Plant & Equipment 30,000,000
5,400,000
Taxes (40%) 2,160,000 Total Assets 85,000,000
3,240,000
Common Stock Div. 600,000 Liabilities and Equity:
$2,640,000 Accounts Payable $20,000,000
Notes Payable 5,000,000
Accrued Expenses 5,000,000
Bonds 25,000,000
Common Stock 5,000,000
Capital in Excess of Par 10,000,000
Retained Earnings 15,000,000
Total Liabilities and
Equity $85,000,000
Shares outstanding of common stock = 1,000,000
Market price of common stock = $18.
Use Table for the following questions.
The Total Debt to Total Asset ratio is:
Return on Assets ratio is:
The Total Asset Turnover ratio is:
The Operating Profit Margin is:
The Average Collection Period (365 day year) is:
The Market to Book ratio is:
The Debt to Equity ratio is:
The Inventory Turnover ratio is:
The Return on Equity is: