| Ratio of liabilities to stockholders' equity |
$2,590,000 ÷ $4,015,000 |
| Accounts receivable turnover |
$8,280,000 ÷ [($714,000 + $740,000) ÷ 2] |
| Quick ratio |
$1,866,000 ÷ $900,000 |
| Current ratio |
$3,091,000 - $900,000 |
| Number of days' sales in receivables |
[($714,000 + $740,000) ÷ 2] ÷ ($8,280,000 ÷ 365) |
| Number of times interest charges are earned |
($989,400 + $127,000) ÷ $127,000 |
| Number of times preferred dividends are earned |
$801,420 ÷ $65,000 |
| Number of days' sales in inventory |
[($1,072,000 + $1,100,000) ÷ 2] ÷ ($4,100,000 ÷ 365) |
| Working capital |
$3,091,000 - $900,000 |
| Inventory turnover |
$4,100,000 ÷ [($1,072,000 + $1,100,000) ÷ 2] |
| Ratio of fixed assets to long-term liabilities |
$2,690,000 ÷ $1,690,000 |
Points:
Use the balance sheet form below to enter amounts you identify from the calculations on the Liquidity and Solvency Measures panel. You will identify other amounts for the balance sheet on the Profitability Measures panel. If you have a choice of two amounts, assume the first amount in the ratio is for the end of the year. Calculate any missing amounts.
|
Balance Sheet amounts
|
|
December 31
|
|
1
|
Assets
|
|
|
2
|
Current assets:
|
|
|
3
|
Cash
|
$823,000.00
|
|
4
|
Marketable securities
|
|
|
5
|
Accounts receivable (net)
|
|
|
6
|
Inventory
|
|
|
7
|
Prepaid expenses
|
|
|
8
|
Total current assets
|
|
|
9
|
Long-term investments
|
|
|
10
|
Property, plant, and equipment (net)
|
|
|
11
|
Total assets
|
|
|
12
|
Liabilities
|
|
|
13
|
Current liabilities
|
|
|
14
|
Long-term liabilities
|
|
|
15
|
Total liabilities
|
|
|
16
|
Stockholders' Equity
|
|
|
17
|
Preferred stock, $10 par
|
|
|
18
|
Common stock, $5 par
|
|
|
19
|
Retained earnings
|
|
|
20
|
Total stockholders' equity
|
|
|
21
|
Total liabilities and stockholders' equity
|