178.Financial statements for Cancun Corporation are presented below.
Cancun Corporation
Comparative Balance Sheet
December 31
Assets
20×8
20×7
Cash
$ 120,000
$ 110,000
Accounts receivable (net)
135,000
95,000
Inventory
270,000
240,000
Property, plant, and equipment (net)
750,000
800,000
Total assets
$1,275,000
$1,245,000
Liabilities and Stockholders’ Equity
Accounts payable
$ 152,000
$ 208,000
Accrued liabilities
12,000
16,000
Bonds payable, 10 percent
160,000
160,000
Common stock, $10 par
500,000
500,000
Retained earnings
451,000
361,000
Total liabilities and stockholders’ equity
$1,275,000
$1,245,000
Cancun Corporation
Income Statement
For the Year Ended December 31, 20×8
Net sales
$1,200,000
Cost of goods sold
700,000
Gross margin
$ 500,000
Operating expenses
Depreciation expense
$ 70,000
Interest expense
10,000
Other expenses
260,000
340,000
Income before income taxes
$ 160,000
Income taxes expense
40,000
Net income
$ 120,000
Note: Dividends of $0.60 per share were declared and paid during 20×8. The market price of the stock on December 31, 20×8 was $18.00 per share.
Compute the following for 20×8 and place your answers in the spaces provided. Round answers to two decimal places. Show your work.
Quick ratio
Days’ payable
Days’ sales uncollected
Debt to equity ratio
Profit margin
Price/earnings (P/E) ratio
Return on assets
Dividends yield
179.Use the following information to calculate the ratios requested below. Round answers to two decimal places. Show your work.
Average inventory
$ 6,000
Average total assets
80,000
Cost of goods sold
21,000
Income taxes expense
3,600
Interest expense
2,000
Net income
4,800
Net sales
40,000
Market price, December 31, on 2,000 shares
$36/share
Return on assets
Inventory turnover
Price/earnings (P/E) ratio
Interest coverage ratio
180.Use the following information to calculate the ratios requested below. Round answers to two decimal places. Show your work.
Average inventory
$ 4,500
Average total assets
50,000
Cost of goods sold
15,750
Income taxes expense
2,700
Interest expense
1,500
Net income
3,200
Net sales
30,000
Market price, December 31, on 2,000 shares
$48/share
Return on assets
Inventory turnover
Price/earnings (P/E) ratio
Interest coverage ratio
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