Problem:
Accounts Payable..............$ 1,800
Accounts Receivable.......... 5,475
Building.............................40,000
Cash........................... 1,125
Capital Stock................... 20,000
Inventory............................ 3,400
Land............................ 10,000
Long-Term Notes Payable.... 27,000
Market Value of Equity........ 90,000
Net Income.................... 7,000
Retained Earnings (ending).... 5,000
Sales............................. 100,000
Short-Term Notes Payable.......2,300
Stockholders' Equity........... 25,000
Unearned Revenue..................3,900
Use the information in the table above to compute the following ratios:
a. Debt Ratio
b. Current Ratio
c. Return on Sales
d. Asset Turnover
e. Return on Equity
f. Price-Earnings Ratio