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MCS,PHD
Argosy University/ Phoniex University/
Nov-2005 - Oct-2011
Professor
Phoniex University
Oct-2001 - Nov-2016
Exercise 9-12 Ratio analysis
Compute the specified ratios using Hilda Company’s balance sheet at December 31, 2011.
|
Assets Cash |
$ 15,000 |
|
Marketable securities |
8,000 |
|
Accounts receivable |
13,000 |
|
Inventory |
11,000 |
|
Property and equipment |
170,000 |
|
Accumulated depreciation |
(12,500) |
|
Total assets |
$204,500 |
|
Equities |
|
|
Accounts payable |
$ 8,500 |
|
Current notes payable |
3,500 |
|
Mortgage payable |
4,500 |
|
Bonds payable |
21,500 |
|
Common stock |
114,000 |
|
Retained earnings |
52,500 |
|
Total liabilities and stockholders’ equity |
$204,500 |
The average number of common stock shares outstanding during 2011 was 880 shares. Net in- come for the year was $15,000.
Required
Compute each of the following:
a. Current ratio
b. Earnings per share
c. Quick (acid-test) ratio
d. Return on investment
e. Return on equity
f. Debt to equity ratio
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