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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 Ã· \$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 â€“ \$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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