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Consider the following information:
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
- Current ratio
- Return on total assets
- Sales to total assets
- Acid-test ratio
- Times interest earned
- Earnings per common share
- Accounts receivable collection period
- Return on shareholders’ equity
- (Appendix) Scott formula.
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