Long-term debt ratio Times interest earned 0.1 10.0 Current ratio 1.2 Quick ratio 1.0 Cash ratio 0.4 3.0 Inventory turnover Average collection period 73 days Use the above information from the tables to work out the following missing entries, and then calculate the company's return on equity. Note: Turnover and the average collection period are calculated using start-of-year, not average, values. (Enter your answers in millions. Round intermediate calculations and final answers to 2 decimal places.) INCOME STATEMENT (Figures in $ millions) Net sales Cost of goods sold Selling, general, and administrative expenses Depreciation Earnings before interest and taxes (EBIT) Interest expense 24.00 34.00 Income before tax Tax (35% of income before tax) Net income BALANCE SHEET (Figures in $ millions) This Year Last Year Assets Cash and marketable securities $34 Accounts receivable 48 Inventories 40 Total current assets $122 Net property, plant, and equipment 39 Total assets $161

Long-term debt ratio Times interest earned 0.1 10.0 Current ratio 1.2 Quick ratio 1.0 Cash ratio 0.4 3.0 Inventory turnover Average collection period 73 days Use the above information from the tables to work out the following missing entries, and then calculate the company's return on equity. Note: Turnover and the average collection period are calculated using start-of-year, not average, values. (Enter your answers in millions. Round intermediate calculations and final answers to 2 decimal places.) INCOME STATEMENT (Figures in $ millions) Net sales Cost of goods sold Selling, general, and administrative expenses Depreciation Earnings before interest and taxes (EBIT) Interest expense 24.00 34.00 Income before tax Tax (35% of income before tax) Net income BALANCE SHEET (Figures in $ millions) This Year Last Year Assets Cash and marketable securities $34 Accounts receivable 48 Inventories 40 Total current assets $122 Net property, plant, and equipment 39 Total assets $161

Intermediate Accounting: Reporting And Analysis

3rd Edition

ISBN:9781337788281

Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Chapter4: The Balance Sheet And The Statement Of Shareholders' Equity

Section: Chapter Questions

Problem 16P: Ratios Analyses: McCormick Refer to the information for McCormick above. Additional information for...

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