Paper 3 Computer Problems

Paper 3 Computer Problems - Chapter 3 Ratio Analysis...

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Chapter 3: Ratio Analysis Problem 3.1 Sally Corporation's Financial Statements for 2007 are given below: Cash \$60 Accounts Payable \$20 Marketable Securities \$40 Notes Payable \$60 Accounts Receivable \$20 Accrued Taxes \$80 Inventories \$80 Accrued Wages \$40 Total Current Assets \$200 Total Current Liabilities \$200 \$345 Long-term Debt \$100 Accumulated Depreciation \$45 Common Stock \$100 \$300 Retained Earnings \$100 Total Assets \$500 Total Claims on Assets \$500 Net Sales \$1,000 Less: Cost of Goods Sold \$600 Gross Profit \$400 Less: Operating Expenses Selling Expenses \$100 \$50 Lease Payments \$50 Gross Operating Income \$200 Less: Depreciation \$50 Net Operating Income \$150 Less: Interest \$50 Net Income Before Taxes \$100 Less: Taxes \$50 Net Income After Taxes \$50 Compute the following ratios: current ratio, quick ratio, debt ratio, times interest earned, inventory turnover, receivable turnover, average collection period, asset turnover, profit margin on sales, return on equity,

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Paper 3 Computer Problems - Chapter 3 Ratio Analysis...

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