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CP 13–8

20 August, 2015 - 10:00

Consider the following information:

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Assume that 80% of sales are on credit, that the average of all balance sheet items is equal to the year-end figure, that all preferred share dividends have been paid, and that the number of common shares outstanding is 10.

Required: Calculate the following ratios and percentages

  1. Current ratio
  2. Return on total assets
  3. Sales to total assets
  4. Acid-test ratio
  5. Times interest earned
  6. Earnings per common share
  7. Accounts receivable collection period
  8. Return on shareholders’ equity
  9. (Appendix) Scott formula.