Profitability liquidity and solvency ratios shannon


Profitability, Liquidity, and Solvency Ratios Shannon Corporation gathered the following information from its 2016 financial statements:

Net Sales $185,000
Net Income 35,200
Cash provided by Operating Activities 35,000
Expenditures on Property, Plant and Equipment 15,000
Current Assets 40,500
Current Liabilities 27,000
Total Assets 135,000
Total Liabilities 97,500

Using the above data, calculate the following (1) return on sales ratio, (2) current ratio, (3) debt-to-total-assets ratio, and (4) free cash flow. Round return on sales and debt-to-total assets ratios to one decimal point and round current ratio to two decimal points.

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Accounting Basics: Profitability liquidity and solvency ratios shannon
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