Mince Company's condensed financial statements appear below:
Mince Company
Balance Sheet
December 31
|
Cash and marketable securities
|
$100,000
|
|
Accounts receivable
|
120,000
|
|
Inventories
|
170,000
|
|
Prepaid expenses
|
10,000
|
|
Plant and equipment (net)
|
200,000
|
|
Total assets
|
$600,000
|
|
Accounts payable
|
$150,000
|
|
Taxes payable
|
45,000
|
|
Interest payable
|
5,000
|
|
Long-term bonds payable
|
100,000
|
|
Common stock (no par, 20,000 shares issued and outstanding)
|
140,000
|
|
Retained earnings
|
160,000
|
|
Total liabilities and stockholders' equity
|
$600,000
|
Mince Company
Income Statement
For the Year Ended December 31
|
Sales (all on account)
|
$2,700,000
|
|
Cost of goods sold
|
1,680,000
|
|
Gross margin
|
1,020,000
|
|
Operating expenses
|
790,000
|
|
Net operating income
|
230,000
|
|
Interest expense
|
20,000
|
|
Net income before taxes
|
210,000
|
|
Income taxes (30%)
|
63,000
|
|
Net income
|
$ 147,000
|
There was no change in the number of common shares outstanding during the year.
Required:
Determine the following:
a. Working capital.
b. Acid-test (quick) ratio.
c. Current ratio.
d. Earnings per share of common stock.
e. Book value per share.
f. Times interest earned.
g. Debt-to-equity ratio.