
FINANCIAL ACCOUNTING
10th Edition
ISBN: 9781259964947
Author: Libby
Publisher: MCG
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Transcribed Image Text:The balance sheet and income statement for the J. P.
Robard Mfg. Company are as follows:
Calculate the following ratios: Current ratio
Times interest earned
Inventory turnover
Total asset turnover
Operating profit margin
Operating return on assets
Debt ratio
Average collection period
Fixed asset turnover
Return on equity
J. P. Robard Mfg., Inc. Balance Sheet ($000)
Cash $550
Accounts receivable 2,100
Inventories 1,060
Current assets $3,710
Net fixed assets 4,520
Total assets $8,230
Accounts payable $1,200
Accrued expenses 610
Short-term notes payable 280
Current liabilities $2,090
Long-term debt 2,000
Owners' equity 4,140
Total liabilities and owners' equity $8,230
J. P. Robard Mfg., Inc. Income Statement ($000)
Net sales (all credit) $7,940
Cost of goods sold 3,310
Gross Profit $4,630
Operating expenses (includes $500 depreciation) 3,050
Net operating income $1,580
Interest expense 368
Earnings before taxes $1,212
Income taxes (40%) 485
Net income $727
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