Problem: The following data are taken from the financial statements of R. Reid Company. The average number of shares of common outstanding for the year was $10,000. The following data are in the alphabetical order:
A/P $25,000
A/R 76,000
Cash 34,000
Gross Profit 185,000
Net income 60,000
Net sales $400,000
Other current liabilities 15,000
Salaries payable 4,000
Stock holder's equity 114,000
Total assets 285,000
Instructions:
Compute the following:
(1) Current ratio
(2) Debt to total assets ratio
(3) Earnings per share
(4) working capital