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p15-6 - $38,400 $373,000 $350,000 2 = 10.6(i Earnings per...

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P15-6) (a) Current ratio = $215,000 $145,000 = 1.5:1. (b) Acid-test ratio = $21,000 + $18,000 + $86,000 $145,000 = 0.86:1. (c) Receivables turnover = $600,000 ($86,000 + $74,000) 2 = 7.5 times. (d) Inventory turnover = $415,000 $90,000 + $70,000 2 = 5.2 times. (e) Profit margin ratio = $38,400 $600,000 = 6.4%. (f) Asset turnover = $600,000 $638,000 + $560,000 2 = 1.0 times. (g) Return on assets = $38,400 $638,000 + $560,000 2 = 6.4%. (h) Return on common stockholders’ equity =
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Unformatted text preview: $38,400 $373,000 + $350,000 2 = 10.6%. (i) Earnings per share = $38,400 30,000 (1) = $1.28. (1) $150,000 ÷ $5.00 (j) Price-earnings ratio = $19.50 $1.28 = 15.2 times. (k) Payout ratio = $15,400 (2) $38,400 = 40.1%. (2) $200,000 + $38,400 – $223,000 (l) Debt to total assets = $265,000 $638,000 = 41.5%. (m) Times interest earned = $64,200 (3) $7,800 = 8.2 times. (3) $38,400 + $18,000 + $7,800...
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