Reference no: EM131764000

Accounting for Managers

Directions: Be sure to make anelectronic copy of your answer before submitting it to Ashworth Collegefor grading.

Financial StatementAnalysis

The following information relates toHarris Corporation.

Account	Current year	Prior year
Net sales (all credit)	$520,125	$499,500
Cost of goods sold	$375,960	$353,600
Gross profit	$144,165	$145,900
Income from operations	$ 95,500	$ 79,900
Interest expense	$ 23,500	$ 19,500
Net income	$ 57,600	$ 51,600
Cash	$ 30,600	$ 15,900
Accounts receivable, net	$ 33,800	$ 23,200
Inventory	$ 42,000	$ 30,300
Prepaid expenses	$ 2,000	$ 1,500
Total current assets	$ 108,400	$ 70,900
Total long-term assets	$ 62,000	$ 38,000
Total current liabilities	$ 46,000	$ 41,600
Total long-term liabilities	$ 20,000	$ 22,700
Common stock, no par, 3,000 shares, value $50/share	$ 30,000	$ 30,000

Required:

a. What is the acid-test ratio forthe current year?

b. What is the inventory turnoverfor the current year?

c. What is days' sales in receivablesfor the current year?

d. What is the book value pershare of common stock for the current year?

e. What is the price-earningsratio for the current year?

f. What is the rate of return ontotal assets for the current year?

g. What is thetimes-interest-earned ratio for the current year?

h. What is the current ratio forthe current year?