The Fisher Apparel Company balance sheet for the year ended 2010 is as follows:
|
December 31, 2010
(in Thousands of Dollars)
|
|
Assets
|
|
|
|
Cash
|
|
$ 3,810
|
|
Marketable securities
|
|
2,700
|
|
Accounts receivable
|
|
27,480
|
|
Inventories
|
|
41,295
|
|
Plant and equipment
|
$64,650
|
|
|
Less Accumulated depreciation
|
17,100
|
|
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Net plant and equipment
|
|
47,550
|
|
Total assets
|
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$122,835
|
|
Liabilities and Stockholders' Equity
|
|
|
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Accounts payable
|
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$ 14,582
|
|
Current portion of long-term debt
|
|
3,000
|
|
Accrued wages
|
|
1,200
|
|
Accrued taxes
|
|
3,600
|
|
Other current liabilities
|
|
2,200
|
|
Long-term debt
|
|
33,000
|
|
Common stock ($10 par)
|
|
19,500
|
|
Capital contributed in excess of par
|
|
15,000
|
|
Retained earnings
|
|
30,753
|
|
Total liabilities and stockholders' equity
|
|
$122,835
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a. What is Fisher's investment in current assets?
b. Determine Fisher's working capital investment.
c. Determine Fisher's current ratio.
d. Determine Fisher's return on stockholders' equity if its 2010 earnings after tax are $10,000(000).