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    Calculate: Accounting Finance

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    Computations: The following financial statements apply to the next six problems?

    Robert Manufacturing
    Balance Sheet
    December 31, XXXX

    Cash $ 200
    Receivables 245
    Inventory 625
    Total Current Assets $ 1,070
    Net Fixed Assets 1,200

    Total Assets $ 2,270
    =====

    Accounts Payable $ 205
    Notes Payable 425
    Other Current Liabilities 115
    Total Current Liabilities $ 745
    Long-term Debt . 420
    Total Liabilities $ 1165
    Common Equity 1105

    Total Liabilities and Capital $2,270
    ======

    Robert Manufacturing
    Income Statement
    For Year ended December 31, XXXX

    Sales $ 2,400
    Cost of Goods Sold (1,834)
    Gross Profit $ 566
    Selling Expenses 175
    General and Administrative Expenses 216
    Earnings Before Interest and taxes (EBIT) $ 175
    Less Interest Expense 35
    Earnings Before Taxes (EBT) $ 140
    Less Taxes (40%) 56
    Net Income $ 84
    Earning Per Share $ 8.40
    Price $40

    Questions:
    1. Calculate the current ratio.
    2. Calculate the debt ratio.
    3. Calculate profit margin on sales
    4. Return on total assets.
    5. Calculate the Inventory ratio.
    6. Calculate the price earnings ratio.

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    https://brainmass.com/business/finance/calculate-accounting-finance-136071

    Solution Preview

    1. Calculate the current ratio.

    Current Ratio = Current Assets/Current Liabilities
    Current Assets = 1,070
    Current Liabilities = 745
    Current Ratio = 1,070/745 = 1.44

    2. Calculate the debt ratio.

    Debt Ratio = Total Liabilities/Total ...

    Solution Summary

    This solution explains the calculation of various ratios, including the current ratio, debt ratio, profit margin on sales, return on total assets, Inventory ratio and price earnings ratio. All calculations are included.

    $2.19

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