Response to the following problem:
Selected year-end financial statements of McCord Corporation follow. (All sales were on credit; selected balance sheet amounts at December 31, 2010, were inventory, $32,400; total assets, $182,400; common stock, $90,000; and retailed earnings, $31,300.)
Income Statement:
Sales - $348,600
Cost of Goods Sold ' 229,150
Gross Profit ' 119,450
Operating Expenses ' 52,500
Interest Expense ' 3,100
Income before taxes ' 63,850
Income taxes ' 15,800
Net income - $48,050
Balance Sheet
Assets:
Cash - $9,000
Short term investments ' 7,400
Accounts receivable, net ' 28,200
Notes receivable (trade) ' 3,500
Merchandise inventory ' 31,150
Prepaid expenses ' 1,650
Plant assets, net ' 152,300
Total assets - $233,200
Liabilities and Equity:
Accounts Payable - $16,500
Accrued wages payable ' 2,200
Income taxes payable ' 2,300
Long-term note payable, secured by mortgage on plant assets ' 62,400
Common stock ' 90,000
Retailed earnings ' 59,800
Total liabilities and equity - $233,200
Compute the following:
(1) current ratio,
(2) acid-test ratio,
(3) days sales uncollected,
(4) inventory turnover,
(5) days sales in inventory,
(6) debt-to-equity ratio,
(7) times interest earned,
(8) profit margin ratio,
(9) total asset turnover,
(10) return on total assets, and
(11) return on common stockholders equity.