Scully Corporation’s comparative balance sheets are presented below.

ACC 280 E15-11 Scully Corporation’s comparative balance sheets are presented below.

Principles of Accounting: Weygandt, J. J., Kimmel, P. D., & Kieso, D. E. (2008).

Financial Accounting (6th ed.). Hoboken, NJ: Wiley.

Axia College of University of Phoenix (UoP)

E15-11 Scully Corporation’s comparative balance sheets are presented below.

                                     SCULLY CORPORATION

                                              Balance Sheets

                                                   December 31

                                                           2008                                        2007

Cash                                                    $ 4,300                                    $ 3,700

Accounts receivable                            21,200                                     23,400

Inventory                                             10,000                                    7,000

Land                                                    20,000                                     26,000

Building                                               70,000                                     70,000

Accumulated depreciation                   (15,000)                                   (10,000)

Total                                                    $110,500                                 $120,100

Accounts payable                                $ 12,370                                  $ 31,100

Common stock                                    75,000                                     69,000

Retained earnings                                23,130                                     20,000

Total                                                    $110,500                                 $120,100

Scully’s 2008 income statement included net sales of $100,000, cost of goods sold of $60,000, and net income of $15,000.

Instructions

Compute the following ratios for 2008.

(a) Current ratio.

(b) Acid-test ratio.

(c) Receivables turnover.

(d) Inventory turnover.

(e) Profit margin.

(f) Asset turnover.

(g) Return on assets.

(h) Return on common stockholders’ equity.

(i) Debt to total assets ratio.