Wk2 D2 - $226,000 $243,000 b. = $86,000 = 7.82 $75,000 =...

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E17-18 (15-20 min.) a. = 61,000 + 28,000 + 122,000 + 237,000 1.63 $275,000 = 47,000 + 116,000 + 272,000 2.15 $202,000 b. = 61,000 + 28,000 + 122,000 0.77 $275,000 = 47,000 + 116,000 0.81 $275,000 2007 Current Ratio 2006 Current Ratio 2007 Acid-test Ratio 2006 Acid-test Ratio
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c. = 275,000 + 40,000 0.56 $560,000 = 202,000 + 52,000 0.52 $490,000 d. = $165,000 3.44 $48,000 = $158,000 4.05 $39,000 2007 Debt Ratio 2006 Debt Ratio 2007 Times-Interest-Earned 2006 Times-Interest-Earned A) Liabilities have increased from 1.48 to 1.54. B) Acid test has reduced from 0.81 to 0.77. C) Debt has increased from 0.52 to 0.56. D) Interest earned has decreased from 4.05 to 3.44.
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P17-25A (40-50 min.) Req. 1 (Dollars and stock quantities in thousands) 2008 2007 a. Current Ratio = $371,000 = 1.64 $382,000 = 1.57
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Unformatted text preview: $226,000 $243,000 b. = $86,000 = 7.82 $75,000 = 6.25 $11,000 $12,000 c. Inventory Turnover = $240,000 = 1.55 $218,000 = 1.18 $154,500 $184,500 d. = $44,000 = 0.338 $30,000 = 0.285 $130,000 $105,000 e. = $44,000 = 4.40 $30,000 = 3.33 10,000 9,000 f. Price / Earnings Ratio = $49.00 = 11.13 $32.50 = 9.75 4.40 3.33 Times-Interest-Earned Ratio Return on Common Stockholders' Equity Earnings per Share of Common Stock Req. 2 Answer: A) The ability to pay debts and sell inventoty has increased from 2008 to 2009 from 1.18 to 1.55. B) The investment atractiveness of it's common stock is good seeing as the E.P.S. has increased from 2008 to 2009, along with all other categories....
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This note was uploaded on 05/02/2011 for the course ACCT 206 taught by Professor Rodish during the Spring '11 term at Ashford University.

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Wk2 D2 - $226,000 $243,000 b. = $86,000 = 7.82 $75,000 =...

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