Selected year-end financial statements of McCord Corporation follow sheet amounts at December 31, 2010, were inventory, $32,400; total assets, $182,400; common stock, $90,000; and retained earnings, $31,300.)
McCORD CORPORATION:
Income Statement
For Year Ended December 31, 2011
Sales ............. $348,600
Cost of goods sold ........229,150
Gross profit ............ 119,450
Operating expenses ......52,500
Interest expense.......... 3,100
Income before taxes .......63,850
Income taxes ........... 15,800
Net income .......... $ 48,050
McCORD CORPORATION
Balance Sheet
December 31, 2011
Assets Liabilities and Equity
Cash ........... $ 9,000 Accounts payable ........$ 16,500
Short-term investments ....7,400 Accrued wages payable ..... ...2,200
Accounts receivable, net ...28,200 Income taxes payable .........2,300
Notes receivable (trade) ....3,500 Long-term note payable, securedMerchandise inventory . . . . . . . .31,150 by mortgage on plant assets....62,400
Prepaid expenses . . . . . . . . . . . . . 1,650 Common stock, $1 par value ....90,000
Plant assets, net . . . . . . . . . . . . 152,300 Retained earnings ..... ...59,800
Total assets . . . . . . . . . . . . . . . $233,200 Total liabilities and equity .............$233,200
Required:
Compute the following
(1) Current ratio
(2) Acid-test ratio
(3) Days sales uncollected
(4) Inventory turnover
(5) Days sales in inventory
(6) Debt to equity ratio
(7) Times interest earned
(8) Profit margin ratio
(9) Total asset turnover
(10) Return on total assets
(11) Return on common stockholders equity