Anonymous
Anonymous asked in Business & FinanceOther - Business & Finance · 6 years ago

help with accounting?

Selected year-end financial statements of McCord Corporation follow. (All sales were on credit; selected balance sheet amounts at December 31, 2010, were inventory, $46,900; total assets, $179,400; common stock, $110,000; and retained earnings, $53,348.)

McCORD CORPORATION

Income Statement

For Year Ended December 31, 2011

Sales $ 454,600

Cost of goods sold 297,350

Gross profit 157,250

Operating expenses 98,700

Interest expense 4,900

Income before taxes 53,650

Income taxes 21,612

Net income $ 32,038

McCORD CORPORATION

Balance Sheet

December 31, 2011

Assets | Liabilities and Equity

Cash $ 16,000 | Accounts payable $ 19,500

Short-term investments 9,400 | Accrued wages payable 3,600

Accounts receivable, net 29,400 | Income taxes payable 4,100

Notes receivable (trade)* 7,000 | Long-term note payable, secured

Merchandise inventory 38,150 | by mortgage on plant assets 66,400

Prepaid expenses 3,050 | Common stock 110,000

Plant assets, net 147,300 | Retained earnings 46,700

Total assets $ 250,300 Total liabilities and equity $ 250,300

* These are short-term notes receivable arising from customer (trade) sales.

Required: Compute the following. (Use 365 days a year. Do not round intermediate calculations and round your final answers to 1 decimal place.)

(1) Current ratio ___ to ___

(2) Acid-test ratio ___ to ___

(3) Days' sales uncollected (including note) ___days

(4) Inventory turnover ___times

(5) Days' sales in inventory ___days

(6) Debt-to-equity ratio ___ to ___

(7) Times interest earned ___times

(8) Profit margin ratio ___%

(9) Total asset turnover ____times

(10) Return on total assets ___%

(11) Return on common stockholders' equity ____%

1 Answer

Relevance
  • Sandy
    Lv 7
    6 years ago
    Favorite Answer

    You can find the formulas here:

    http://www.cliffsnotes.com/more-subjects/accountin...

    http://accountingexplained.com/financial/ratios/de...

    (1) Current ratio 3.8 to 1 (103,000/27200)

    (2) Acid-test ratio 2.3 to 1 (61800/27200)

    (3) Days' sales uncollected (including note) 29.2 days (36400/454,600*365)

    (4) Inventory turnover 7.0 times (297,350/42525)

    (5) Days' sales in inventory 46.8 days (38,150/297,350 *365)

    (6) Debt-to-equity ratio 0.60 to 1 (93600/156700)

    (7) Times interest earned 11.9 times (58550/4900)

    (8) Profit margin ratio 7.0% (32,038/454,600)

    (9) Total asset turnover 2.1 times (454,600/ 214850/

    (10) Return on total assets 14.9% (32,038 /214850)

    (11) Return on common stockholders' equity 20.0% (32,038/160024)

Still have questions? Get your answers by asking now.