Problem 12-18 Name:
Enter the appropriate numbers/formulas in the shaded (gray) cells.
An asterisk (*) will appear in the column to the right of an incorrect answer.
A. Profit margin:
Net income 70,000$
Profit margin ratio 17.74%
B. Total asset turnover:
Sales 420,000$
Total asset turnover 1.02
C. ROA:
Profit margin (from A) 17.74%
D. ROCSE:
Net income 70,000$
Return on equity 32.56%
Comprehensive Ratio Analysis
Instructor
E. EPS:
Net income 70,000$
Shares outstanding
/30,000
Earnings per share 2.33$
F. Inventory turnover:
G. Current ratio:
Current assets 180,000$
Current liabilities
/60,000
Current ratio 3.00
H. Quick ratio:
Quick assets 70,000$
/60,000
Quick ratio 1.17
Net sales 420,000$
Accounts receivable turnover 9.88
Cost of goods sold 214,000$
Inventory turnover 2.38
J. Debt-to-equity ratio
K. Times interest earned:
Net income 70,000$
Total liabilities 180,000$