Preparenbsp various ratiosfollowing are selected data from

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Reference no: EM13356125

Prepare various ratios.

Following are selected data from the comparative income statement and balance sheet for Deerfield Corporation for the years ended December 31, 20X8 and 20X7:

Selected Data

	20X8	20X7
Net sales (all on credit)	$97,600	$93,000
Cost of goods sold	53,500	52,500
Gross profit	44,700	40,500
Income from operations	16,300	15,000
Interest expense	3,100	3,500
Net income	9,800	9,000

Cash	7,700	7,500
Accounts receivable, net	10,700	12,500
Inventory	20,000	26,000
Prepaid expenses	1,000	900
Total current assets	39,400	46,900
Total long-term assets	50,000	67,000
Total current liabilities	32,000	44,500
Total long-term liabilities	11,000	39,800
Common stock, no par	*10,000	10,000
Retained earnings	25,400	19,600

*NOTE: 2000 shares of common stock have been issued and outstanding since the company started operations.During the entire fiscal year ended December 31, 20X8, the stock was selling for $45 per share.

Calculate the following ratios at December 31, 20X8:
a) acid-test ratio
b) rate of return on total assets
c) times-interest-earned ratio
d) current ratio

Reference no: EM13356125

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