Q1) Scully Corporation's comparative balance sheets are given below.
|
SCULLY CORPORATION Balance Sheets December 31
|
|
|
2008
|
2007
|
|
Cash
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$ 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
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$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
|
Scully's 2008 income statement included net sales of $100,000, cost of goods sold of $60,000, and net income of $15,000.
Questions
Calculate the following ratios for 2008.
(a) Current ratio.
(b) Acid-test ratio.
(c) Receivables turnover.
(d) Inventory turnover.
(e) Profit margin.
(f) Asset turnover.
(g) Return on assets.
(h) Return on common stockholders' equity.
(i) Debt to total assets ratio.