Mince companys condensed financial statements appear

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Mince Company's condensed financial statements appear below:

Mince Company

Balance Sheet

December 31

Cash and marketable securities

$100,000

Accounts receivable

120,000

Inventories

170,000

Prepaid expenses

10,000

Plant and equipment (net)

200,000

Total assets

$600,000

Accounts payable

$150,000

Taxes payable

45,000

Interest payable

5,000

Long-term bonds payable

100,000

Common stock (no par, 20,000 shares issued and outstanding)

140,000

Retained earnings

160,000

Total liabilities and stockholders' equity

$600,000

Mince Company

Income Statement

For the Year Ended December 31

Sales (all on account)

$2,700,000

Cost of goods sold

1,680,000

Gross margin

1,020,000

Operating expenses

790,000

Net operating income

230,000

Interest expense

20,000

Net income before taxes

210,000

Income taxes (30%)

63,000

Net income

$ 147,000

There was no change in the number of common shares outstanding during the year.

Required:

Determine the following:

a. Working capital.

b. Acid-test (quick) ratio.

c. Current ratio.

d. Earnings per share of common stock.

e. Book value per share.

f. Times interest earned.

g. Debt-to-equity ratio.

Reference no: EM13484163

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