Solution-Calculate the current ratio and working capital

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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Calculate the current ratio and working capital

Reference no: EM13534333

Reference no: EM13534333

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