acy1111-ch15.5

acy1111-ch15.5 - PROBLEM 15-5 (a) Current ratio = $215,000...

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© 2009 For Instructor Use Only 15-33 PROBLEM 15-5 (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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This note was uploaded on 02/04/2012 for the course ACCT 2111 taught by Professor Eric during the Spring '11 term at CUHK.

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acy1111-ch15.5 - PROBLEM 15-5 (a) Current ratio = $215,000...

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