Calculate the current ratio and return on total assets

Assignment Help Finance Basics

Reference no: EM1361004

Computations: The following financial statements apply to the next six problems?

Robert Manufacturing
Balance Sheet
December 31, XXXX

Cash $ 200
Receivables 245
Inventory 625
Total Current Assets $ 1,070
Net Fixed Assets 1,200

Total Assets $ 2,270
=====

Accounts Payable $ 205
Notes Payable 425
Other Current Liabilities 115
Total Current Liabilities $ 745
Long-term Debt . 420
Total Liabilities $ 1165
Common Equity 1105

Total Liabilities and Capital $2,270
======

Robert Manufacturing
Income Statement
For Year ended December 31, XXXX

Sales $ 2,400
Cost of Goods Sold (1,834)
Gross Profit $ 566
Selling Expenses 175
General and Administrative Expenses 216
Earnings Before Interest and taxes (EBIT) $ 175
Less Interest Expense 35
Earnings Before Taxes (EBT) $ 140
Less Taxes (40%) 56
Net Income $ 84
Earning Per Share $ 8.40
Price $40

Questions:
1. Calculate the current ratio.
2. Calculate the debt ratio.
3. Calculate profit margin on sales
4. Return on total assets.
5. Calculate the Inventory ratio.
6. Calculate the price earnings ratio.

Reference no: EM1361004

Questions Cloud

Show key purchasing operations : What are the key purchasing operations issues and why are they key issues and how do you manage these key issues?

Forbearance : When a firm chooses not to react against a competitor's threat is called forbearance. A concept, closely aligned with forbearance is co-opetition; which refers to the combination of both competition and cooperation.

Assistance with stress or emotional issues : What are some indications that may prompt an individual to consult a professional for assistance with stress or emotional issues?

Explain the limitations of national income accountin : Explain the limitations of national income accounting and Why does investment spending not equal saving in the circular flow?

Calculate the current ratio and return on total assets : The following financial statements apply to the next six problems? Calculate the current ratio, debt ratio, profit margin on sales and Return on total assets.

Achieving diversification : Diversification is achieved through two methods: through horizontal relationships, and through hierarchical relationships.

Elucidate cost of producing an additional washing machine : Elucidate the cost of producing an additional washing machine when 50 cars are being produced. when 150 cars are being produced.

How much storage will probe require if it is to gather data : The system has a clock that runs at 1GHz. During each cycle of the system clock, the status of these 5 registers how much storage will the probe require if it is to gather data for 2 seconds?

Theoretical approaches to job satisfaction : What are some of the theoretical approaches to job satisfaction? Which one of these approaches makes the most sense to you? Why?

User Account

All Pages