1 answer

The balance sheet and income statement for the A. Thiel Mfg. Company are as follows. Calculate...

Question:

The balance sheet and income statement for the A. Thiel Mfg. Company are as follows. Calculate the ratios at the bottom.Cash $ 500 Accounts receivable 2,000 Inventories 1,000 Current assets $3,500 Net fixed assets 4,500 Total assets $8,000 AccouIncome Statement ($000) Sales (all credit) $8,000 Cost of goods sold (3,300) Gross profit $4,700 Operating expenses (includesCalculate the following ratios: Current ratio Operating return on assets Times interest earned Debt ratio Inventory turnover

Cash $ 500 Accounts receivable 2,000 Inventories 1,000 Current assets $3,500 Net fixed assets 4,500 Total assets $8,000 Accounts payable $1,100 Accrued expenses 600 Short-term notes payable 300 Current liabilities $2,000 Long-term debt 2,000 Owners' equity 4,000 Total liabilities and owners' equity $8,000
Income Statement ($000) Sales (all credit) $8,000 Cost of goods sold (3,300) Gross profit $4,700 Operating expenses (includes $500 depreciation) (3,000) Operating profits $1,700 Interest expense (367) Earnings before taxes $1,333 Income taxes (40%) (533) Net income $ 800
Calculate the following ratios: Current ratio Operating return on assets Times interest earned Debt ratio Inventory turnover Days in receivables Total asset turnover Fixed-asset turnover Operating profit margin Return on equity

Answers

Answer:

Computation of Current Ratio Current Ratio = Current Assets/Current Liabilities Current Assets $ 3,500 Current Liabilities $

Answer:

Computation of Total Asset Turnover Asset Turnover = Sales/Average Total Assets Since, average total assets can not be calcul

Answer:

Computation of Debt Ratio Debt to Asset Ratio = Total Liabilities/Total Assets Total Liabilities 4,000 Calculation (2,000 + 2

Answer:

Computation of Return on Equity Return on Equity = (Net Income/Owners Equity) X 100 Net Income 800 Equity $ 4,000 Debt to equ

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