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The condensed financial statements of Marks Compan...




The condensed financial statements of Marks Company for the year 2013 are presented below: Marks Company Comparative Balance Sheets As of December 31, 2013 2013 Cash $ 420,000 Receivables (net) 460,000 Inventories 380,000 Plant and equipment 1,700,000 Accumulated depreciation (260,000) $2,700,000 Accounts payable Bonds payable Common stock ($10 par) Retained earnings $ 340,000 400,000 1,520,000 440,000 $2,700,000 Marks Company Condensed Income Statement For the Year Ended December 31, 2013 Sales $2,400,000 Cost of goods sold 1,700,000 Gross profit 700,000 Administrative and selling expenses 500,000 Net income $ 200,000 Cash, Receivables (net) and Inventories are current assets. Plant & Equipment and Accumulated depreciation are the net fixed assets. Accounts payable is a current liability and Bonds payable is a long-term debt. The operating year is 365 days. Compute the following financial ratios shown below (a. through j.) (60 points) a. Current ratio b. Quick ratio c. Average payment period d. Total assets turnover e. Fixed assets turnover f. Average collection period g. Inventory turnover h. Debt ratio (Total debt/Total assets) i. ROA (Return on Assets) j. ROE (Return on Equity)


Paper#2717 | Written in 18-Jul-2015

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