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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