Compute the following ratios for 2015


The comparative statements of Corbin Company are presented below.
Income statement
For the Years Ended December 31
2015 2014
Net sales (all on amount) $595,000 $520,000
Expenses
Cost of goods sold 415,000 354,000
Selling and administrative 120,800 114,800
Interest expense 7,800 6,000
Income tax expense 15,000 14,000
Total expense 558,600 488,800
Net income $ 36,400 $ 31,200

Assets 2015 2014
Current assets
Cash $21,000 $18,000
Short-term investments 18,000 15,000
Accounts receivable (net) 91,000 74,000
Inventory 85,000 70,000
Total current assets 215,000 177,000
Plant assets (net) 423,000 383,000
Total assets $638,000 $560,000

Liabilities and Stockholders' Equity 2015 2014
Current liabilities
Accounts payable $122,000 $110,000
Income taxes payable 23,000 20,000
Total current liabilities 145,000 130,000
Long-term liabilities
Bonds payable 120,000 80,000
Total liabilities 265,000 210,000
Stockholders' equity
Common stock ($5 par) 150,000 150,000
Retained earnings 223,000 200,000
Total stockholders' equity 373,000 350,000
Total liabilities and stockholders' equity $638,000 $560,000

Additional data:
The common stock recently sold recently sold at $19.50 per share.

Compute the following ratios for 2015.
a. Current ratio h. Return on common stockholders' equity
b. Acid-test ratio I. Earning per share
c. Accounts receivable turnover j. Price-earning ratio
d. Inventory turnover k. Payout
e. Profit margin l. Debt to assets ratio
f. Asset turnover m. Times interest earned
g. Return on assets

 

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Accounting Basics: Compute the following ratios for 2015
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