Task: Financial ratios
Shown below are some key figures from the balance sheets of AA Company for two successive years:
December 31, 2000 December 31, 1999
Total assets (of which 30% are current) $4,000,000 $3,000,000
Current liabilities 320,000 400,000
Bonds payable (long term) 1,500,000 1,200,000
Capital stock, $10 par value 1,000,000 1,000,000
Retained earnings 1,180,000 400,000
Dividends of $50,000 were declared and paid in 2000. Compute the following:
Current ratio at end of 1999 ___________to 1
Current ratio at end of 2000 ____________to 1
Working capital at end of 1999 $__________
Working capital at end of 2000$___________
Debt ratio at end of 1999__________%
Debt ratio at end of 2000 __________%
Earnings per share for 2000 $___________