From the following information, compute the ratios indicated and place the proper numbers in the spaces provided. Assume the average for the year is the same as the ending balances for the balance sheet accounts. Round answers to one decimal place, and show your work.
Anders Corporation
Balance Sheet
December 31, 20x5
Assets
Cash $ 30,000
Marketable securities 20,000
Accounts receivable (net) 40,000
Inventory 60,000
Prepaid expenses 16,000
Property, plant, and equipment 234,000
Total assets $400,000
Liabilities and Stockholders'' Equity
Current liabilities $ 60,000
Long-term liabilities 100,000
Stockholders'' equity 240,000
Total liabilities and stockholders'' equity $400,000
Anders Corporation
Income Statement
For the Year Ended December 31, 20x5
Net sales $160,000
Cost of goods sold 120,000
Gross margin $ 40,000
Operating expenses
Selling and administrative expenses $ 16,000
Interest expense 8,000
Income taxes expense 4,000 28,000
Net income $ 12,000
Anders had 4,000 shares of common stock issued and outstanding. The market price of common stock at year end was $15.00 per share. Dividends paid in 20x5 were $0.60 per share.
Current ratio 6.7
Asset turnover .4
Quick ratio
1.5 Return on assets .03= 3%
Receivable turnover
4 Return on equity .1
Days'' sales uncollected 91.25
Debt to equity ratio .7
Inventory turnover
2 Interest coverage ratio 3.00
Profit margin .075
Days'' inventory on hand 182.5
Dividend yield
.04 Price/earnings (P/E) ratio