10 accounting ratio questions
no.substitute
accounting_hw.docx1. Calculate the PROFIT MARGIN RATIO based on the following information:
CASH: $14,870
ACCOUNTS RECEIVABLE: $22,108
PREPAID $3,010
SUPPLIES: $927
EQUIPMENT: $62,150
ACCUMULATED DEPRECIATION: $13,750
ACCOUNTS PAYABLE $28,000
NET SALES: $325,000
INTEREST EXPENSE: $6,000
TAX EXPENSE: $12,600
EARNINGS BEFORE INTEREST AND TAXES: $122,623
NUMBER OF SHARES OUTSTANDING 335,000
2. Calculate the DEBT TO EQUITY ratio based on the following information:
CASH: 14,870
ACCOUNTS RECEIVABLE: $22,108
PREPAID: $3010
SUPPLIES: $927
EQUIPMENT: $62,150
ACCUMULATED DEPRECIATION: $13,750
ACCOUNTS PAYABLE: $28,000
3. Calculate the EQUITY RATIO based on the following information
CASH: 14,870
ACCOUNTS RECEIVABLE: $22,108
PREPAID: $3010
SUPPLIES: $927
EQUIPMENT: $62,150
ACCUMULATED DEPRECIATION: $13,750
ACCOUNTS PAYABLE: $28,000
4. Calculate the EARNINS PER SHARE based on the following information:
CASH: $14,870
ACCOUNTS RECEIVABLE: $22,108
PREPAID $3,010
SUPPLIES: $927
EQUIPMENT: $62,150
ACCUMULATED DEPRECIATION: $13,750
ACCOUNTS PAYABLE $28,000
NET SALES: $325,000
INTEREST EXPENSE: $6,000
TAX EXPENSE: $12,600
EARNINGS BEFORE INTEREST AND TAXES: $122,623
NUMBER OF SHARES OUTSTANDING 335,000
5. Calculate the WORKING CAPITAL RATIO based on the following information:
CASH: 14,870
ACCOUNTS RECEIVABLE: $22,108
PREPAID: $3010
SUPPLIES: $927
EQUIPMENT: $62,150
ACCUMULATED DEPRECIATION: $13,750
ACCOUNTS PAYABLE: $28,000
6. Calculate the TIMES INTERSET AND EARN RATIO based on the following information: round to two decimals and assume this is the first year of operation.
CASH: $14,870
ACCOUNTS RECEIVABLE: $22,108
PREPAID $3,010
SUPPLIES: $927
EQUIPMENT: $62,150
ACCUMULATED DEPRECIATION: $13,750
ACCOUNTS PAYABLE $28,000
NET SALES: $325,000
INTEREST EXPENSE: $6,000
TAX EXPENSE: $12,600
EARNINGS BEFORE INTEREST AND TAXES: $122,623
NUMBER OF SHARES OUTSTANDING 335,000
7. Calculate the RETURN ON TOTAL ASSETS RATIO based on the following information. Assume this is the first year of operation.
CASH: $14,870
ACCOUNTS RECEIVABLE: $22,108
PREPAID $3,010
SUPPLIES: $927
EQUIPMENT: $62,150
ACCUMULATED DEPRECIATION: $13,750
ACCOUNTS PAYABLE $28,000
NET SALES: $325,000
INTEREST EXPENSE: $6,000
TAX EXPENSE: $12,600
EARNINGS BEFORE INTEREST AND TAXES: $122,623
NUMBER OF SHARES OUTSTANDING 335,000
8. Calculate the DEBT RATIO based on the following information:
CASH: 14,870
ACCOUNTS RECEIVABLE: $22,108
PREPAID: $3010
SUPPLIES: $927
EQUIPMENT: $62,150
ACCUMULATED DEPRECIATION: $13,750
ACCOUNTS PAYABLE: $28,000
9. Calculate the QUICK RATIO based on the following information:
CASH: 14,870
ACCOUNTS RECEIVABLE: $22,108
PREPAID: $3010
SUPPLIES: $927
EQUIPMENT: $62,150
ACCUMULATED DEPRECIATION: $13,750
ACCOUNTS PAYABLE: $28,000
10. Calculate the CURRENT RATIO based on the following information:
CASH: 14,870
ACCOUNTS RECEIVABLE: $22,108
PREPAID: $3010
SUPPLIES: $927
EQUIPMENT: $62,150
ACCUMULATED DEPRECIATION: $13,750
ACCOUNTS PAYABLE: $28,000
