Sunshine’s comparative balance sheets are given below.
Sunshine corporation Balance Sheets December 31
2007 2006
Cash $ 4,300 $ 3,700
Accounts receivable 21,200 23,400
Inventory 10,000 7,000
Land 20,000 26,000
Building 70,000 70,000
Accumulated depreciation (15,000) (10,000)
Total $110,500 $120,100
Accounts payable $ 12,370 $ 31,100
Common stock 75,000 69,000
Retained earnings 23,130 20,000
Total $110,500 $120,100
Sunshine’s 2007 income statement included net sales of $100,000, cost of goods sold of $60,000, and net income of $15,000.
Instructions
Calculate the given ratios for 2007.
(a) Asset turnover
(b) Acid-test ratio.
(c) Receivables turnover.
(d) Inventory turnover.
(e) Profit margin.
(f) Current ratio.
(g) Debt to total assets ratio
(h) Return on common stockholders’ equity.
(i) Return on assets.