Reference no: EM132643939

Sales(net).                                                              $1,600,000
Cost of goods sold                                                        960,000
Gross profit                                                                 640,000
Selling and administrative expenses                                  240,000
Income from operations                                                 400,000
Other revenue                                                              60,000
Other expenses                                                           (50,000)
Income before taxes                                                     410,000
Income taxes                                                             (123,000)
Income before extraordinary item                                     287,000
Extraordinary loss, net of applicable income taxes of $75,000 (175,000)
Net income                                                                    112,000

Per share of common stock-

Income before extraordinary item $2.87
Extraordinary item, net of tax (1.75)
Net income $1.12

Problem 1: Using the information for ABC Co. Balance Sheet and Income Statement for December 31st calculate the following ratio analysis.

1. Inventory Turnover
2. Profit margin on sales 
3. Rate of return on assets 
4. Asset Turnover 
5. Debt to total assets 
6. Receivable Turnover