Compute the return on common stockholders equity

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Reference no: EM131754473

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

                                      2008   2007

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: EM131754473

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