Compute the specified ratios using Duluth Company’s for 2018:
Assets
Cash………………………………………………………$ 36,000
Marketable securities……………………………………….24,000
Accounts receivable………………………………………. 50,000
Inventory………………………………………………….. 44,000
Property and equipment…………………………………. 320,000
Accumulated depreciation………………………………..(74,000)
Total assets……………………………………………… $400,000
Liabilities and Stockholders’ Equity
Accounts payable……………………………………… $ 23,000
Current notes payable……………………………………. .7,000
Mortgage payable…………………………………………. 8,000
Bonds payable…………………………………………… 43,000
Common stock………………………………………….. 200,000
Retained earnings………………………………………. 119,000
Total liabilities and stockholders’ equity…………….. $400,000
The average number of shares outstanding during 2018 was 880 shares. Net income for the year was $40,000.
Required
Compute each of the following and round computations to two decimal points:
a. Current ratio.
b. Earnings per share.
c. Quick (acid-test) ratio.
d. Return on investment.
e. Return on equity.
f. Debt to equity ratio.
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