Accounting

1.     Selected recent balance sheet and income statement information for Somerset, Inc. follows:

a.   Calculate accounts receivable turnover for 2013 and 2012.  Has it improved during the year or worsened?

b.   Calculate inventory turnover for 2013 and 2012.  Has it improved during the year or worsened?

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2.     Selected balance sheet and income statement information for two manufacturing companies: Calico, Inc. and Packard Corporation follows:

a.   Calculate the current ratio and quick ratio for both companies.

b.   Which company is more liquid?

c.   Calculate the times-interest-earned ratio and debt-to-equity ratio for both companies.

d.   Which company is more solvent?

3.     The following is selected balance sheet and income statement information for Menendez Company.

Compute the following ratios:

a.   Gross profit percentage

b.   Return on sales

c.    Asset turnover

d.   Return on assets

e.   Return on common stockholders’ equity (Menendez Company has no preferred stock)