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FINANCIAL STATEMENT ANALYSIS ASSIGNMENT 1 - Module/Week 1 (Ch. 3)

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Question;Textbook Assignment 1 Financial Statement Analysis Version AModule/Week 1 (Ch. 3)Table 3-1Faith CompanyBalance SheetAssetsCash and marketable securities$600,000Accounts receivable900,000Inventories1,500,000Prepaid expense75,000Total current assets$3,075,000Fixed assets8,000,000Less: accum depreciation-2,075,000Net fixed assets$5,925,000Total assets$9,000,000LiabilitiesAccount payable$800,000Notes payable700,000Accrued taxes50,000Total current liabilities$1,550,000Long-term debt2,500,000Owner?s equity (1 million shares of common stock outstanding)4,950,000Total liabilities and owner?s equity$9,000,000Income StatementNet sales (all credit)$10,000,000Less: Cost of goods sold-3,000,000Selling and administrative expense-2,000,000Depreciation expense-250,000Interest expense-200,000Earning before taxes4,550,000Income taxes-1,820,000Net income$2,730,0001.Based on the information in Table 3-1, the current ratio is?2.Based on the information in Table 3-1, the quick ratio is?3.Based on the information in Table 3-1, the average collection period is?4.Based on the information in Table 3-1, the accounts receivable turnover is?5.Based on the information in Table 3-1, the debt ratio is?6.Based on the information in Table 3-1, the return on assets (ROA) is?7.Based on the information in Table 3-1, the times interest earned ratio is?8.Based on the information in Table 3-1, assuming that no preferred dividend were paid, the return on common equity is?9.Based on the information in Table 3-1, the fixed asset turnover ratio is? 10.Based on the information in Table 3-1, the total asset turnover is?

 

Paper#48467 | Written in 18-Jul-2015

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