ch12 hw answers (part2)

# ch12 hw answers (part2) - CHAPTER 12 HOMEWORK (PART2):...

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CHAPTER 12 HOMEWORK (PART2): E12-8A Calculate the following for the year ended December 31, 2007. a. Current ratio 2007 Ratio - 07 Current assets \$140,000 3.11 Current liabilities 45,000 b. Working capital Current assets \$140,000 Current liabilities (45,000 ) Working capital \$95,000 c. Accounts receivable turnover ratio 2007 Ratio - 07 Net credit sales \$450,000 6.92 Avg. net AR 65,000 d. Inventory turnover ratio 2007 Ratio - 07 Cost of goods sold \$210,000 4.94 Avg. inventory 42,500 e. Return on assets 2007 Ratio - 07 Net income + interest expense \$76,500 0.19 Avg. total assets 400,000 f. Return on equity 2007 Ratio - 07 Net income \$75,000 0.29 Avg. common SE 259,000

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E12-9A Calculate earnings per share, the price- earnings ratio and times-interest-earned for Furniture Showcase. a. Earnings per share Net income \$117,000 2.60 Avg shares CS o/s 45,000 b. Price-earnings ratio Mkt. price \$20 7.69 EPS 2.60 c. Times-interest-earned ratio Net income + interest expense \$129,000 10.75 Interest expense 12,000 P12-5A a. Calculate the following ratios for 2009 and 2008: 2009 2008 1. Current ratio Current assets \$1,597,377 1.34 1,547,290 1.39 Current liabilities \$1,189,862 \$1,111,973 2. Acid-test ratio Quick assets \$624,669 0.52 \$623,649 0.56 Current liabilities \$1,189,862 \$1,111,973 3. Working capital (in thousands) Current assets \$1,597,377 \$1,547,290 Current liabilities (1,189,862 ) (1,111,973 ) \$407,515 \$435,317
4. Accounts receivable turnover ratio Net credit sales \$5,003,837 8.27 \$4,934,430 8.58 Avg. net AR \$605,281 \$575,415 5. Debt to equity ratio Total liabilities \$2,353,558 1.39 \$2,349,522

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## This note was uploaded on 04/30/2008 for the course AIM 2301 taught by Professor Muslu during the Spring '08 term at University of Texas at Dallas, Richardson.

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ch12 hw answers (part2) - CHAPTER 12 HOMEWORK (PART2):...

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