Mince companys condensed financial statements appear

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Reference no: EM13484163 , Length: 30

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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