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Compute the return on common stockholders

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Reference no: EM131789354

Problem - Scully Corporation's comparative balance sheets are presented below.

SCULLY CORPORATION Balance Sheets December 31

2008 2007

Cash $ 4,300 $ 3,700

Accounts receivable 21,200 23,400

Inventory 10,000 7,000

Land 20,000 26,000

Building 70,000 70,000

Accumulated depreciation  (15,000) (10,000)

Total  $110,500 $120,100

Accounts payable $ 12,370 $ 31,100

Common stock 75,000 69,000

Retained earnings 23,130 20,000

Total  $110,500 $120,100

Scully's 2008 income statement included net sales of $100,000, cost of goods sold of $60,000, and net income of $15,000.

Instructions - Compute the following ratios for 2008.

(a) Current ratio

(b) Acid-test ratio

(c) Receivables turnover

(d) Inventory turnover

(e) Profit margin %

(f) Asset turnover

(g) Return on assets %

(h) Return on common stockholders; equity %

(i) Debt to total assets ratio %

Reference no: EM131789354

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