Reference no: EM131197037

(Ratio Computations and Analysis) Prior Company's condensed financial statements provide the following information,

PRIOR COMPANY BALANCE Sheet

	Dec, 31, 2014	Dec, 31, 2013
Cash	$           52,000	$      60,000
Accounts recontabee (net)	198,000	80000
Short-term investments	80,000	40,000
Inventory	440,000	360,000
Prepaid expenses	3,000	7,000
Total current assets	$ 773,000	$ 547,000
Property, plant, and equipment (net)	857,000	853,000
Taal assets	$1,630,000	$1,400,000
Current liabilities	240,000	160,000
Bonds payable	400,000	400,000
Common stockholders' equity	990,000	840,000
Total liabilities and stockhokkce equity	$1,630,000	$1,400,000

INCOME STATEMENT FOR THE YEAR ENDED 2014

Sales revenue                                          $ 1,640,000

Cost of goods sold                                       (800,000)

Gross profit                                                  840,000

Selling and administrative expanses                (440,000)

Interest expense                                          (40,000)

Net income                                               $ 360,000

Instructions

(a) Determine the following for 2014,
(1) Current ratio at December 31,
(2) Acid-test ratio at December 31,
(3) Accounts receivable turnover,
(4) Inventory turnover,
(5) Return on assets,
(6) Profit margin on sales,

(b) Prepare a brief evaluation of the financial condition of Prior Company and of the adequacy of its profits.

Attached is the Excel file

Attachment:- Assignment- Excel file.rar