Calculate the current ratio and working capital

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Reference no: EM13534333

Ratio analysis. (LO 3)

Evans Family Grocers reported the following for the two most recent fiscal years.

December 31

2008

2007

Cash

$ 25,000

$ 20,000

Receivables (net)

60,000

70,000

Merchandise inventory

55,000

30,000

Plant assets

280,000

260,000

Total assets

$420,000

$380,000

Accounts payable

$45,000

62,000

Long-term notes payable

$4?9p99

100,000

Common stock

45,000

122,000

Retained earnings

75,000

96,000

Total Liabilities and Shareholder's Equity

135,000

$380,000

Net income for the year ended 12/31/08

165,000


Sales( all sales were on account)

450,000


Cost of goods sold

210,000


Interest expense

1,500


Calculate the following for the year ended December 31,2008.

a. Current ratio

b. Working capital

c. Accounts receivable turnover ratio

d. Inventory turnover ratio

e. Return on assets

f. Return on equity

Reference no: EM13534333

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