This paper circulates around the core theme of Compute the Acid-test ratio at 12/31/13 (b) Receivables turnover in 2013 (c) Inventory turnover in 2013 together with its essential aspects. It has been reviewed and purchased by the majority of students thus, this paper is rated 4.8 out of 5 points by the students. In addition to this, the price of this paper commences from £ 99. To get this paper written from the scratch, order this assignment now. 100% confidential, 100% plagiarism-free.
Computation of selected ratios.
The following data is given:
December 31,
2013 2012
Cash $ 66,000 $ 50,000
Accounts receivable (net) 68,000 60,000
Inventories 90,000 110,000
Plant assets (net) 383,000 325,000
Accounts payable 57,000 40,000
Salaries and wages payable 10,000 5,000
Bonds payable 70,000 70,000
10% Preferred stock, $40 par 100,000 100,000
Common stock, $10 par 120,000 90,000
Paid-in capital 80,000 65,000
Retained earnings 170,000 175,000
Net credit sales 800,000
Cost of goods sold 600,000
Net income 80,000
Instructions
Compute the following ratios:
(a) Acid-test ratio at 12/31/13
(b) Receivables turnover in 2013
(c) Inventory turnover in 2013
(d) Profit margin on sales in 2013
(e) Rate of return on common stock equity in 2013