Reference no: EM132499231
The following information pertains to Greenwich Company. Assume that all balance sheet amounts represent both average and ending balance figures. Assume that all sales were on credit.
Balance Sheet
Assets
Cash and short-term investments 40,000
Accounts receivable, net 25,000
Inventory 20,000
Property, plant, and equipment 210,000
Total Assets 295,000
Liabilities and Stockholders' Equity
Current Liabilities 60,000
Long-term liabilities 85,000
Stockholders' equity -- common 150,000
Total Liabilities and Stockholders' Equity 295,000
Income Statement
Sales 85,000
Cost of goods sold 45,000
Gross profit 40,000
Operating expenses 20,000
Net income 20,000
Number of shares of common stock 6,000
Market price of common stock 20
Dividends per share 0.90
Requirements:
Question 1. What is the current ratio for this company?
Question 2. What is the receivable turnover for this company?
Question 3. What is the inventory turnover for this company?
Question 4. What is the Debt/Equity ratio?
Question 5. What is the return on sales?
Question 6. What is the Earnings per share (EPS)?
Question 7. What is the dividend pay-out ratio?
Question 8. What is the net income or net profit ratio?
Question 9. What is the gross profit ratio?