Maurice Tutor
$15/per page/Negotiable
Selected year-end financial statements of Overland Corporation follow. (All sales were on credit; selected balance sheet amounts at December 31, 2010, were inventory, $16,400; total assets, $95,900; common stock, $41,500; and retained earnings, $19,800.)
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OVERLAND CORPORATION Income Statement For Year Ended December 31,2011 |
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Sales                      |
$215,500 |
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Cost of goods sold          |
136,100 |
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Gross profit                |
79,400 |
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Operating expenses         |
50,200 |
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Interest expense            |
1,200 |
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Income before taxes         |
28,000 |
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Income taxes               |
2,200 |
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Net income                |
$ 25,800 |
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OVERLAND CORPORATION |
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Assets |
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Liabilities and Equity |
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Cash                |
$5,100 |
Accounts payable          |
$10,500 |
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Short-term investments |
5,900 |
Accrued wages payable     |
2,300 |
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Accounts receivable, net |
11,100 |
Income taxes payable      |
1,600 |
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Notes receivable (trade)* |
2,000 |
Long-term note payable, secured |
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Merchandise inventory  |
12,500 |
by mortgage on plant assets |
25,000 |
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Prepaid expenses      |
1,000 |
Common stock, $5 par value |
41,000 |
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Plant assets, net        |
72,900 |
Retained earnings         |
$30,100 |
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Total assets           |
$110,500 |
Total liabilities and equity   |
$110,500 |
Required
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.