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
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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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