View the step-by-step solution to:

The condensed financial statements of Westward Corporation for 2006 are presented below.

Please see attached.
The condensed financial statements of Westward Corporation for 2006 are presented below.
Westward Corporation Westward Corporation
Balance Sheet Income Statement
December 31, 2006 For the Year Ended December 31, 2006
Assets Revenues $2,000,000
Current assets Expenses
Cash and temporary Cost of goods sold 1,080,000
  investments $   30,000 Selling and administrative
Accounts receivable 70,000   expenses 495,000
Inventories      120,000 Interest expense               30,000
Total current assets 220,000 Total expenses         1,605,000
Property, plant, and Income before income taxes 395,000
equipment (net)      780,000 Income tax expense              140,000
Total assets $1,000,000 Net income $   255,000
Liabilities and Stockholders' Equity
Current liabilities $    80,000
Long-term liabilities 300,000
Common stockholders' equity      620,000
Total liabilities and
stockholders' equity $1,000,000
Additional data as of December 31, 2005: Inventory = $100,000; Total assets = $900,000; Common stockholders' equity = $540,000.
Instructions
Compute the following listed ratios for 2006 showing supporting calculations.
(a) Current ratio = .
(b) Debt to total assets = .
(c) Times interest earned = .
(d) Inventory turnover = .
(e) Profit margin ratio = .
(f) Return on common stockholders' equity = .
(g) Return on assets = .

Recently Asked Questions

Why Join Course Hero?

Course Hero has all the homework and study help you need to succeed! We’ve got course-specific notes, study guides, and practice tests along with expert tutors.

-

Educational Resources
  • -

    Study Documents

    Find the best study resources around, tagged to your specific courses. Share your own to gain free Course Hero access.

    Browse Documents
  • -

    Question & Answers

    Get one-on-one homework help from our expert tutors—available online 24/7. Ask your own questions or browse existing Q&A threads. Satisfaction guaranteed!

    Ask a Question