Stock $14,000, debtors $20,000, creditors $20,000, beginning balance of retained earnings $18,000, administration and selling expense $20,000, 10% dividend on equity capital $3,000. The following ratios are also given: Stock turnover: 5 times Current ratio: 2:1 Debtors collection period: 73 days Outstanding expenses: 15% of creditors Ratio of net profit after tax to net tangible assets is 1:10 Rate of income tax: 5% The ratio of fixed assets to paid-up capital is 9:10 The total assets of the firm are:
Stock $14,000, debtors $20,000, creditors $20,000, beginning balance of retained earnings $18,000, administration and selling expense $20,000, 10% dividend on equity capital $3,000. The following ratios are also given: Stock turnover: 5 times Current ratio: 2:1 Debtors collection period: 73 days Outstanding expenses: 15% of creditors Ratio of net profit after tax to net tangible assets is 1:10 Rate of income tax: 5% The ratio of fixed assets to paid-up capital is 9:10 The total assets of the firm are:
Financial Accounting
15th Edition
ISBN:9781337272124
Author:Carl Warren, James M. Reeve, Jonathan Duchac
Publisher:Carl Warren, James M. Reeve, Jonathan Duchac
Chapter17: Financial Statement Analysis
Section: Chapter Questions
Problem 20E: Five measures of solvency or profitability The balance sheet for Garcon Inc. at the end of the...
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