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Problem 2: The following information pertains to Walrus Inc. Cash Accounts receivable Inventory Plant assets (net) Total assets Accounts payable...

The following information pertains to Walrus Inc.
Cash \$60,000
Accounts receivable 170,000
Inventory 100,000
Plant assets (net) 582,000
Total assets \$912,000

Accounts payable \$110,000
Accrued taxes and expenses payable 42,000
Long-term debt 120,000
Common stock (\$10 par) 260,000
Paid-in capital in excess of par 50,000
Retained earnings 330,000
Total equities \$912,000

Net sales (all on credit) \$2,000,000
Cost of goods sold 1,400,000
Net income 120,000

Required:
Compute the following:
(ignore Avg for balance sheet accounts)
(a) Current ratio
(b) Inventory turnover
(c) Receivables turnover
(d) Book value per share
(e) Earnings per share
(f) Debt to total assets
(g) Profit margin on sales
(h) Return on common stock equity

Problem 2: The following information pertains to Walrus Inc. Cash \$60,000 Accounts receivable 170,000 Inventory 100,000 Plant assets (net) 582,000 Total assets \$912,000 Accounts payable \$110,000 Accrued taxes and expenses payable 42,000 Long-term debt 120,000 Common stock (\$10 par) 260,000 Paid-in capital in excess of par 50,000 Retained earnings 330,000 Total equities \$912,000 Net sales (all on credit) \$2,000,000 Cost of goods sold 1,400,000 Net income 120,000 Required: Compute the following: (ignore Avg for balance sheet accounts) (a) Current ratio (b) Inventory turnover (c) Receivables turnover (d) Book value per share (e) Earnings per share (f) Debt to total assets (g) Profit margin on sales (h) Return on common stock equity

Solution:a) Current Ratio = Current assets/Current liabilities
Current assets = Cash+Accounts receivable+Inventory
Current assets = 60000+170000+100000
Current assets = \$330,000
Current liabilities...

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